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US crude oil prices continue to recover after revisiting August lows last week.
How high can WTI crude go before sellers gather enough bearish sentiment? batch?
We take a closer look at the possibility. resistance region:
Crude Oil WTI (USOIL) 4 hours Chart by TradingView
In case you missed it, No progress in Gaza ceasefire talks That helped lift U.S. crude (WTI) from its August low of $71.75. U.S. data and comments from Federal Open Market Committee members suggesting an interest rate cut as early as September may also have helped.
Not only did WTI crude rise from the $71.75 level, it also maintained bullish momentum all the way to its current prices near $75.25.
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on crude oil and market sentiment, it’s time to take a look at Economic Calendar And stay informed Daily essential news!
How high can WTI crude oil go before enough sellers step in to change its direction?
WTI is trading near the 200 simple moving average on the 4-hour chart, which was also an area of interest earlier this month. Look for a downtrend Candlesticks Which could indicate a potential bearish reversal from the recent rally seen by Black Crack.
But until we see a potential catalyst, WTI crude oil may continue to attract buying demand. We are watching for a potential move towards the R1 pivot point line ($76.57) which is near the 200 simple moving average area. More importantly, it is closer to Descending triangle Resistance that has not been broken since early July.
Bearish candles and then selling momentum from the $76.50 – $77.00 area would make for a good risk/reward ratio for those who expect WTI to return to the August lows.
Of course, it is possible that WTI crude may not see sustained selling pressure for several days.
If WTI breaks through resistance areas and sustains bullish candles above the $78.00 area, the commodity could move towards the psychological $80.00 area or its previous highs of $82.00.
Whichever way you decide to play this setup, make sure you practice properly. Risk management And watch it Key market drivers to come!
