WTI Crude Oil Technical Analysis

Crude Oil recently managed
to break above the 80$ resistance but found another strong resistance around
the $83 level. The fundamentals remained pretty much unchanged. In fact, on the
demand side the last month string of weaker economic data was replaced by
stronger figures recently, with the latest US Manufacturing PMI still pointing to a reacceleration
in activity. On the supply side, we still have the OPEC+ voluntary output cuts
until the end of Q2 and the tensions in the Red Sea, although this is likely
already priced in.

WTI Crude Oil Technical
Analysis – Daily Timeframe

On the daily chart, we can see that Crude Oil broke
through the $80 level and extended the rally into the key resistance around
the $83 level where we can also find the upper bound of the rising channel.
This is where the sellers stepped in to position for a drop into the lower
bound of the channel. The buyers will need to break this resistance to start
targeting the next resistance around the $93 level.

If the price continues to pull back from these
levels, we can expect the buyers to lean on the black trendline where
they will also find the red 21 moving average for confluence. The
sellers, on the other hand, will want to see the price breaking lower to
increase the bearish bets into the lower bound of the channel.

WTI Crude Oil Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price has
been ranging between the $83 resistance and the $80.50 support where we have
also the 38.2% Fibonacci retracement level
for confluence. The buyers will likely continue to step in around the support
to position for a break above the resistance with a better risk to reward
setup. If the price were to break lower though, the buyers should lean on the
trendline as they will have an even better risk to reward setup.

WTI Crude Oil Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
price is now trading right around the support zone. This is where the buyers
will look for a bounce and will likely increase the bullish bets into the
resistance if the price were to break above the $81.50 level. The sellers, on
the other hand, will want to see the price breaking below the support to
increase the bearish bets into new lows with the trendline as the first target.

Upcoming Events

Today we have Fed’s Waller speaking where the market
will want to see if he sounds hawkish after the recent economic data. Tomorrow,
we get the latest US Jobless Claims figures, while on Friday we conclude with
the US PCE and Fed Chair Powell. Weak data is likely to weigh on Crude Oil,
while strong figures should give it a boost.

See the video below

This article was written by FL Contributors at www.forexlive.com.