Crude Oil has been consolidating in the $70-74 range in the past two weeks as the market remains uncertain on the future demand and supply outlook. On the supply side, the tensions in the Red Sea are still present and the rerouting of the vessel traffic is causing a rise in shipping costs. On the other hand, Saudi Arabia announced on Monday that it will cut its official selling price for oil exports which led to a sharp selloff.
Such decision might be a sign that demand is weaker than expected and Saudi Arabia is struggling to sell all of its production. Moreover, the data from the major economies seems to be stabilising and the market is debating if the imminent central banks rate cuts will improve the outlook before something breaks.
WTI Crude Oil Technical Analysis – Daily Timeframe
On the daily chart, we can see that Crude Oil continues to test the key trendline as the uncertainty in the market is leading to some tentative price action. The sellers should keep on piling in around the trendline with a defined risk above it to position for a drop into the $64 support. The buyers, on the other hand, will want to see the price breaking higher to start targeting the $80 level.
WTI Crude Oil Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the rangebound price action between the $70 support and the $74 resistance. The buyers will need the price to break above the $74 level to gain even more conviction for a rally into the $80 resistance. The sellers, on the other hand, will want to see the price breaking below the $70 level to increase the bearish bets into the $64 support.
WTI Crude Oil Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action between the key levels with the sellers likely to step in around these levels with a defined risk above the $74 resistance. Other than that, there’s not much to do here as traders should just have patience to wait for the right setups.
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