Chart: WTI Crude Oil (USOIL) Targeting Triangle Support Again?

The top of the descending triangle held resistance for crude oil this week, putting the commodity back on track to test the bottom.

Will the support last one more time?

Check out these nearby inflection points I’m tracking on the 4-hour chart:

WTI Crude Oil (USOIL) 4-hour chart from TradingView

Remember the triangle resistance we were watching last time on WTI crude oil?

Well, it looks like the bears were waiting to pounce right there as the ceiling held and kept commodities consolidating even after geopolitical tensions erupted a few days ago.

So far, the lack of counterattacks in Israel is allaying concerns of global oversupply and likely persuading investors to take profits from recent long positions.

But how low can crude oil go from here?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on crude oil and market sentiment yet, then it’s time to check the economic calendar and catch up on the daily fundamentals!

The price finds some support at the pivot point ($74.03 per barrel) as it coincides with a major psychological sign. If this is enough to keep losses under control, crude could revisit the top of the triangle, this time around R1 ($76.57 per barrel) and the 200 SMA dynamic resistance.

However, the 100 SMA is below the 200 SMA, so some bearish vibes may remain in play. If so, commodities could continue to decline to the triangle support that is exactly in line with S1 ($72.37 per barrel), but a break below that could extend the selloff to S2 ($69.83 per barrel).

Regardless of how you decide to play this setup, be sure to practice proper risk management and keep an eye out for major market catalysts to come!

Don’t forget to check out our newly launched currency correlation tool!