Crude Oil Technical Outlook: Neutral
- Oil prices bounce off psychological support after steady decline
- US Crude (WTI) rebounds off $80.00 but the formation of a doji candle highlights indecision
- Brent Crude falls below $90 with Fibonacci levels from the 2020 – 2022 move providing longer term support at around $77.5.
Recommended by Tammy Da Costa
Get Your Free Oil Forecast
Crude Oil prices are currently trading at key technical levels that will likely continue to contribute to both the short and longer-term move.
With both WTI and Brent Crude futures recently rebounding off critical support, the downward trajectory pertaining to energy prices has reached a critical juncture that may jeopardize the imminent move.
Recommended by Tammy Da Costa
How to Trade Oil
After three consecutive months of losses, a bounce off $80.00 allowed US Crude (WTI) to trade higher before peaking at $87.20.
With the $90.00 psychological level providing additional resistance for the upward move, the formation of a doji candle on the weekly timeframe highlights an important zone that may keep both bulls and bears in check. With the downward trajectory still intact, a break below $80.00 may fuel bearish momentum that could lead to a move back towards the January low of $74.27.
What is Crude Oil? A trader’s Primer to Oil Trading
US Crude Oil (WTI) Futures Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
With Fibonacci levels providing additional layers of support and resistance, a move below $74.27 could see the next level of support holding at the 61.8% retracement of the 2020 – 2022 move at $65.25.
US Crude (WTI) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
Similarly, Brent Crude Futures are looking to rise back above $90.00 with the next zone of resistance formed by the 38.2% retracement of the 2020- 2022 move at $92.09. Failure to rise back above $90 could see bears driving prices back below $85 opening the door for the 50% retracement of the same move at $77.56.
Brent Crude Futures Daily Chart
Chart prepared by Tammy Da Costa using TradingView
— Written by Tammy Da Costa, Analyst for DailyFX.com Contact and follow Tammy on Twitter: @Tams707
Source. Invest now with as low as $500, Earn up to 3% ROI daily on GTI Trade.
