I’m seeing a number of technical indicators lining up for a bounce on crude oil!
Do market elements help a continuation of the climb?
Right here’s what I’m lookin’ at:
WTI Crude Oil: 1-hour
Crude oil has been drawing help from geopolitical tensions these days, because the prospect of extra sanctions on Russian oil is holding markets cautious of an power crunch.
The commodity is in correction mode, although, discovering help at a short-term rising channel that’s in step with the 100 SMA dynamic help.
This faster-moving MA is above the 200 SMA to verify that the climb is extra prone to resume than to reverse. To high it off, Stochastic is suggesting that sellers may use a break, and the oscillator is exhibiting a bullish divergence, too!
If present ranges maintain as help, crude oil may discover its approach again as much as the channel resistance on the $120 per barrel mark.
This may additionally be sufficient to verify a breakout from the neckline of the inverted head and shoulders sample highlighted above. In that case, the commodity may be in for waaay extra upside, probably rallying by the identical peak because the reversal formation.
Simply be sure you hold tabs on headlines about Russia, as world leaders are upping the strain on the nation to cease the assaults on Ukraine.
Any indicators of easing tensions would possibly immediate profit-taking and a break decrease for crude oil. Higher hold an eye fixed out for potential weekend gaps additionally!
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