WTI crude oil staged a strong bounce off its falling wedge support on the 4-hour chart but could still encounter roadblocks at nearby resistance levels.
The Fibonacci retracement tool on the latest selloff shows where more oil bears could be waiting to join in the downtrend.
Better keep these inflection points on your radar!
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Geopolitical developments, particularly those concerning Russia-Ukraine peace talks and fresh U.S. sanctions on Iran-related oil entities, appear to be pushing crude oil around these days.
In addition, the energy commodity is taking cues from hopes that the OPEC+ could delay its planned production hike in April on account of a potential increase in Russian oil flowing into the global markets.
So where could crude oil prices be headed from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price is bouncing off its falling wedge support visible on the 4-hour time frame and is closing in on the Fibonacci retracement levels. The 38.2% Fib is near the pivot point level ($71.15 per barrel) while the 61.8% Fib lines up with R1 ($72.14 per barrel) and the wedge resistance.
If any of these hold as a ceiling, look out for a move back to the wedge bottom near the $70 per barrel major psychological mark or a continuation of the slide to the downside targets at S1 ($69.19 per barrel) then S2 ($68.12 per barrel).
On the other hand, an upside break from the wedge top could set off a move to the next bullish levels at R2 ($74.09 per barrel) then R3 ($75.08 per barrel), although the 100 SMA is below the 200 SMA to reflect downside momentum.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
