This week we got again some bullish headlines for the Oil market as the Saudi Arabia and Russia are extending their output cuts. This is giving oil prices some support and will probably help to keep the prices near the $70 level, but if we get more recessionary economic data, we are likely to see more lows for Crude Oil.
WTI Crude Oil Technical Analysis – Daily Timeframe
On the daily chart, we can see that Crude Oil has been ranging for two months now between the $67 and $73 levels. The OPEC+ production cuts keep the oil prices stable near the $70 threshold but the recession in the manufacturing sector and the slowing global economy keeps weighing on the black gold.
WTI Crude Oil Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price has bounced perfectly again from the $67 support and it’s now targeting the $73 resistance. Generally, the best strategy is to avoid trading such rangebound markets and wait for a clear breakout coupled with a fundamental catalyst. Nevertheless, one can also “play the range” buying at support and selling at resistance.
WTI Crude Oil Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the next target for the buyers is the $73 resistance and that’s where we should see the sellers piling in with a defined risk above the zone and target the $64 low again. If the price breaks above the resistance zone, the buyers would have even more conviction and pile in aggressively and target the $83 level.
Upcoming Events
We have some important US data in the next few days beginning with the US Jobless Claims and the ISM Services PMI on Thursday and the US NFP on Friday. A miss across the board, especially in the NFP report, should reinforce the recessionary narrative and therefore weigh on Crude Oil.
