The crude oil market has been battered by negative news on both the demand and supply side in April and that weighed a lot on prices. More recently, the demand side of the equation started to improve as positive developments on the trade front made the market to expect better global growth ahead.
Technically, we might have a doube bottom but we will need a break above the resistance to confirm that. Fundamentally, the uptrend should remain intact as long as things continue to improve. In my opinion, a rally to 72.00 looks very likely now.
WTI crude oil 4 hour
On the 4 hour chart, we can see that the price is back at the key resistance zone around the 64.00 level. This is where we can expect the sellers to step in with a defined risk above the level to position for a drop back into the 55.00 level. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the major trendline around the 67.00 level.
WTI crude oil 1 hour
On the 1 hour chart, we can see that we have an upward trendline defining the bullish momentum. If we get a pullback, we can expect the buyers to lean on the trendline with a defined risk below it to position for a break above the resistance. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 55.00 level next.
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