Chart: WTI Crude Oil (USOIL) Still Stagnant Around Interest Area!

Looks like WTI crude oil traders just can’t make up their minds!

The energy commodity is still in its visible area of ​​interest on the 4-hour time frame as several inflection points lie in the region.

Will the trend persist in the long run?

WTI Crude Oil (USOIL) 4 Hour Forex Chart from TradingView

Worsening geopolitical tensions in the previous week lifted crude oil prices back to the former support zone around $72 per barrel, which held resistance this time.

After all, the spotlight seems to have shifted away from the conflict in the Middle East and back to concerns about global demand, as major economies printed blistering PMI readings a few days ago.

These dragged crude oil back down its short-term ascending channel around $60.75 a barrel, which looks set to hold one more level so far.

Will we see a break lower and downward momentum going forward?

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 fundamental news!

The 100 SMA is below the 200 SMA, suggesting that the path of least resistance is to the downside. Keep an eye out for a move below the channel support as this could drag the price of energy commodities down to the next bearish targets at S2 ($67.45 per barrel) and S3 ($66.36 per barrel) or up to swing low that aligns with S4 ($65.27 per barrel).

On the other hand, a retracement of short-term support could be followed by a return to the top of the channel near R1 ($72.28 per barrel). Sustained upside pressure could even trigger another attempt to break above the interest zone, potentially lifting crude to the next upside barriers at R2 ($73.37 per barrel), then R3 ($75.24 per barrel).

Remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!