If you’re like me and you’ve been watching oil prices, then you’ll know that WTI crude has revisited sub-$100 levels this week.
Will we continue to see oil prices dip?
Or are we only looking at a retracement?
WTI Crude Oil: 4-hour
In case you missed it, progress in the peace talks between Russia and Ukraine as well as global growth concerns from Shanghai’s lockdown dragged on Black Crack prices earlier this week.
U.S. oil (WTI) prices ended up revisiting the $99.00 area after starting the week above $105.00.
Unfortunately for gas consumers but fortunately for oil bulls, WTI bounced from a trend line support after a report showed U.S. crude oil stocks falling sharply last week.
It also didn’t hurt that $99.00 was near the 4-hour 200 SMA during the trend line retest.
Let’s see if there’s enough momentum to extend WTI’s months-long uptrend.
Stochastic has just turned higher from the oversold zone but the 100 SMA has also turned lower and has closed the gap with the 200 SMA.
Markets will watch how prices react to the $110 – $111 area for clues on the commodity’s direction.
A rejection at the symmetrical triangle resistance opens the asset to a retest of the trend line support near the 200 SMA.
But if the trend line bounce leads to upside momentum and then upside breakout of the triangle consolidation, then we could see WTI head for areas of interest near $116, $120, or even $125.
