U.S. crude oil prices have been down bad all week as traders priced in global demand concerns.
How low can crude oil go with a lot of closely watched support levels nearby?
We’re taking a closer look at WTI (USOIL)’s 4-hour time frame!
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
In case you missed it, the Black Crack has been having trouble attracting sustained demand all week as traders bought more U.S. dollars.
Meanwhile, OPEC just downgraded its 2024 and 2025 demand forecasts (again!), citing concerns over demand from key markets like China and India.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
WTI crude oil, which did turn lower from a mid-range zone, is now trading closer to the $68.00 psychological level. That’s conveniently close to the S2 ($67.93) Pivot Point line!
More importantly, it’s a hair’s breadth away from the $67.30 range support zone that hasn’t been broken since September this year.
How low can USOIL go with all these potential support levels attracting buying interest?
We’re watching closely for bullish candlesticks that may hint at a bullish breakout from USOIL’s current consolidation. Look out for consistent trading above $69.00 or $70.00, which could draw in enough demand to push USOIL back to its $72.00 mid-range levels if not the $77.00 range resistance area.
Of course, we could also be seeing a downside breakout in the making.
Watch for sustained trading below $67.00, which exposes the asset to a retest of the $65.25 September lows or even a dip to the $64.00 psychological level. Yipes!
As always, stay on your toes for headlines that could impact overall market sentiment, and practice proper position sizing when taking any trades!
