Chart: WTI Oil (USOIL) Tests Key Area of ​​Interest!

After a sharp rally earlier this week, US crude oil prices have returned to a key area of ​​concern.

Is the second time the charm for WTI bulls?

Let’s take a closer look at the 4-hour time frame!

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

In case you missed it, crude oil prices got a boost yesterday as tensions in the Middle East heated up. Israel began ground operations in southern Lebanon, while Iran launched a missile attack on Israel in retaliation for the killing of Hezbollah leader Nassan Nasrallah.

Meanwhile, a contraction in the US ISM manufacturing PMI saw limited demand amid a risk-on trading environment.

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 the US dollar yet, then it’s time to check the economic calendar and catch up on the daily fundamentals!

WTI crude oil, which was near its lows of $67.00, climbed up to the psychological zone of $70.00. As you can see, the area of ​​interest lines up with today’s Pivot Point R1 ($71.63), 200 SMA, a support area in August, and trendline resistance that has been solid since July.

Will the bears defend the resistance zone?

Watch for bearish wicks and candlesticks around $70.00, which could push WTI lower to the Pivot Point ($69.30) area, if not to its lows of $67.00. A bearish rejection could also see Black Crack hit new monthly lows if markets focus on global growth concerns.

On the other hand, the second time could be the charm for WTI bulls. If geopolitical tensions continue to escalate, WTI could see sustained trade above the $70.00 level and head towards higher inflection points such as $74.00 or $77.00.

what do you think Which way will WTI crude oil go in the next trading sessions?

Whichever bias you end up trading, remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!