Crude Oil remains rangebound with OPEC+ doing a pretty good job in maintaining prices stable cutting production while demand is falling. The recent easing from China to spur the economy is also adding to the resilience of Oil due to the expectations that demand will soon pick up. Overall, there’s not much to do here other than waiting for a breakout.
WTI Crude Oil Technical Analysis – Daily Timeframe
On the daily chart, we can see that Crude Oil has been basically rangebound since the beginning of May. We’ve been seeing this kind of ranges since October last year where Crude Oil trades around a certain price level and then falls to trade around a lower one. First it was around $90, then $80 and now it looks like it wants to remain at $70. This is of course a story of supply and demand where the global economy weakens taking the price lower, but OPEC+ intervenes cutting production and avoiding a collapse in prices.
WTI Crude Oil Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that since bouncing from the $67 swing low level, Crude Oil has rebounded quite strongly and it’s now targeting the resistance zone at $73. The recent strength may be due to the easing measures being adopted in China to counteract the weakening economy. We’ve already seen rate cuts from the PBOC and if this is the start of an easing cycle, we might see Oil prices breaking up soon.
WTI Crude Oil Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a trendline where the price has bounced off of recently. In fact, there was a strong support level at $70 with the 50% Fibonacci retracement level and a previous swing level giving good confluence for the buyers. The target now should be the resistance at $73 and a break above that zone, should give the buyers enough conviction to target the $83 high. The sellers, on the other hand, will either lean on the resistance zone to target the $64 low or wait for the price to break below the trendline before piling in and extend the selloff into the $64 level.
