Crude Oil Technical Analysis – We are back inside the old range

Fundamental
Overview

Crude oil eventually fell
below the key 72.00 support zone and kept the bearish trend intact. The bulls
will now need to see the price rising back above that level to regain some conviction.

The latest moves came from
the tariffs fears at the beginning of last week which gave the crude oil prices
a boost initially but were eventually faded as positive talks led to easing
trade war fears.

We’ve also got an upward
spike on Tuesday as Trump reimposed maximum pressure on Iran to stop the
nuclear program, but the gains didn’t last as the day after Iran expressed
willingness in reaching a deal.

Crude Oil
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that crude oil broke below key 72.00 support zone. We can expect the sellers to pile in
around these levels to keep pushing toward the 67.00 handle. The buyers, on the
other hand, will want to see the price rising back above the 72.00 level to
start targeting the 80.00 resistance next.

Crude Oil Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we now have a downward trendline
defining the current bearish momentum. The trendline stands right around the
key 72.00 level which makes this resistance zone technically stronger.

That’s where we can expect
the sellers to step in with a defined risk above the trendline to position for
new lows, while the buyers will look for a break higher to pile in for a rally
into the 75.00 handle.

Crude Oil Technical
Analysis – 1 hour Timeframe

On the 1 hour chart,
there’s not much else we can add here as the sellers will look for a rejection
around the resistance zone, while the buyers will look for a break higher. We
have a minor support zone around the 70.50 level. If the price breaks below it,
we can expect the sellers to increase the bearish bets into new lows. The red
lines define the average daily range for today.

Upcoming
Catalysts

Tomorrow, we have Fed Chair Powell speaking. On Wednesday, we
get the US CPI report. On Thursday, we have the US PPI and the latest US
Jobless Claims figures. On Friday, we conclude with the US Retail Sales data.

This article was written by Giuseppe Dellamotta at www.forexlive.com.