Last week, crude oil prices came under renewed pressure as we got the news that OPEC+ was considering another 411K B/D output hike in July.
The bearish momentum wasn't enough though to break below a key support zone around the 60.00 handle as better global growth expectations continue to support the market.
This supply and demand balance though is keeping the market in a range and we will likely need a catalyst to see a breakout on either side.
On the daily chart, we can see that we have a strong resistance zone in the 63.00-64.00 price area and a major trendline. The buyers will need to break above those two key levels to open the door for a rally into the 72.00 handle. The sellers, on the other hand, will continue to pile in around the resistance to position for a drop back into the 55.00 low.
On the 4 hour chart, we can see that we are stuck in a range between the 60.00 support and the 64.00 resistance. The market participants will continue to play the range until we get a breakout on either side.
