WTI Crude Oil Technical Analysis – The bulls are eyeing the key resistance

The OPEC+ production cuts
and the expectations of more economic stimulus in China following the dismal
inflation numbers, gave Crude Oil enough strength to break above the key
resistance zone around the $75 level. After a brief rally, the price stalled and
reversed as the PBoC held off from delivering more rate cuts. On Monday though,
China has promised more stimulus, giving another boost to Crude Oil
prices with the $83 resistance now in sight.

WTI Crude Oil Technical
Analysis – Daily Timeframe

On the daily chart, we can see after getting
rejected from the trendline on the
first try of a breakout, Crude Oil bounced on the $75 resistance turned support and
started to rally again to try again a breakout. Thanks to the news of more
China stimulus, the price managed to sustain the breakout and extended the
rally into the $80 level. The buyers are now eyeing the key $83 resistance
where we should find strong sellers waiting there.

WTI Crude Oil Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that if we were to
get a pullback, the buyers can lean on the upward trendline where we can also
find the 38.2% Fibonacci retracement level
and the red 21 moving average. The
sellers, on the other hand, will want to see the price breaking below the
trendline to start piling in and target the $75 support.

WTI Crude Oil Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have a divergence with
the MACD which
is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, the buyers may lean on the last swing low level at
$78.31 with a tight risk below the level and target the $83 resistance.

Upcoming Events

The data to watch for
Crude Oil this week will be the US Jobless Claims tomorrow. Data more or less
in line with expectations shouldn’t cause any notable market move, but big
deviation from the expected numbers can have a meaningful impact. In fact, a
big miss may weigh on Crude Oil prices as the market may get some recessionary
fears. On the other hand, a big beat should give Crude Oil a boost as the
resilience in the labour market supports the demand.

This article was written by FL Contributors at www.forexlive.com. Source