Crude Oil Technical Analysis – We are back inside the old range

Fundamental Overview

Crude oil eventually fell below the key 72.00 support zone and kept the bearish trend intact. The bulls will now need to see the price rising back above that level to regain some conviction.

The latest moves came from the tariffs fears at the beginning of last week which gave the crude oil prices a boost initially but were eventually faded as positive talks led to easing trade war fears.

We’ve also got an upward spike on Tuesday as Trump reimposed maximum pressure on Iran to stop the nuclear program, but the gains didn’t last as the day after Iran expressed willingness in reaching a deal.

Crude Oil Technical Analysis – Daily Timeframe

On the daily chart, we can see that crude oil broke below key 72.00 support zone. We can expect the sellers to pile in around these levels to keep pushing toward the 67.00 handle. The buyers, on the other hand, will want to see the price rising back above the 72.00 level to start targeting the 80.00 resistance next.

Crude Oil Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we now have a downward trendline defining the current bearish momentum. The trendline stands right around the key 72.00 level which makes this resistance zone technically stronger.

That’s where we can expect the sellers to step in with a defined risk above the trendline to position for new lows, while the buyers will look for a break higher to pile in for a rally into the 75.00 handle.

Crude Oil Technical Analysis – 1 hour Timeframe

On the 1 hour chart, there’s not much else we can add here as the sellers will look for a rejection around the resistance zone, while the buyers will look for a break higher. We have a minor support zone around the 70.50 level. If the price breaks below it, we can expect the sellers to increase the bearish bets into new lows. The red lines define the average daily range for today.

Upcoming Catalysts

Tomorrow, we have Fed Chair Powell speaking. On Wednesday, we get the US CPI report. On Thursday, we have the US PPI and the latest US Jobless Claims figures. On Friday, we conclude with the US Retail Sales data.