Crude bulls lean on 71.99 weekly support

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<li><span lang="EN-US" xml:lang="EN-US">Crude oil bullish on W1 timeframe<br />
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<li><span lang="EN-US" xml:lang="EN-US">Strong support level found at 71.99<br />
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<li><span lang="EN-US" xml:lang="EN-US">Stochastic Oscillator bullish </span></li>
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<li><span lang="EN-US" xml:lang="EN-US">4 potential targets on H4 timeframe </span></li>
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<li><span lang="EN-US" xml:lang="EN-US">Bullish scenario invalidated below 71.39</span></li>
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<h3><span lang="EN-US" xml:lang="EN-US">Crude oil prices dropped like a rock last week as a correction wave in the current uptrend played out on the weekly charts. </span></h3>
<p><span lang="EN-US" xml:lang="EN-US">Prices have found bullish backing on a <strong>strong weekly support level at 71.99</strong> with demand potentially picking up from there. </span></p>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/CrudeWeekly_06022024_M.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="1ad0814f-5672-4341-af58-88fd691dcae1" data-src="/s3-static/users/user17/CrudeWeekly_06022024_M.png" /></p>
<p><span lang="EN-US" xml:lang="EN-US">On the daily chart, we can see the fractal nature of the market in action and the weekly correction wave shows a down trend on the daily chart. Here a new correction wave is in progress in the current down trend. Conservative traders might wait for a daily market structure to change before looking for opportunities, while more aggressive traders might consider a long opportunity off the weekly support level. This can be explored further on the 4-hour chart. </span></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/CrudeDaily_06022024_M.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="a1998c61-9171-4e8c-81c8-cb670283a396" data-src="/s3-static/users/user17/CrudeDaily_06022024_M.png" /></p>
<p><span lang="EN-US" xml:lang="EN-US">On the 4-hour chart, a magnificent downtrend can be seen, stretching from the <strong>weekly resistance level at 76.88</strong>, all the way down to the<strong> weekly support level at 71.99.</strong> The bears made a last lower bottom and currently, the bulls are keeping the price above the weekly support level, with a possible early stage of a new uptrend on the books. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">The price broke the downtrend and the shorter price cycle <strong>Stochastics Oscillator confirms the bullish momentum,</strong> but the longer price cycle <strong>Moving Average Convergence Divergence (MACD)</strong> Oscillator warns that there might still be a re-test of the weekly support level. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">If the price reaches the<strong> 73.34 level</strong>, a long opportunity becomes possible. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">Attaching a modified Fibonacci tool to the trigger level at <strong>73.34 and dragging it to the last lower bottom at 71.39</strong>, four conservative targets can be determined:</span></p>
<h3><span lang="EN-US" xml:lang="EN-US">Target 1: 74.12 </span></h3>
<h3><span lang="EN-US" xml:lang="EN-US">Target 2: 74.51 </span></h3>
<h3><span lang="EN-US" xml:lang="EN-US">Target 3: 75.29 </span></h3>
<h3><span lang="EN-US" xml:lang="EN-US">Target 4: 76.27 </span></h3>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/CrudeH4_06022024_M.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="8e3d7012-75bf-4586-b5b6-e719ba59a825" data-src="/s3-static/users/user17/CrudeH4_06022024_M.png" /></p>
<h3><span lang="EN-US" xml:lang="EN-US">If the price breaks past the 71.39 level, this opportunity is no longer likely, and a short opportunity might become possible from a 4-hour market structure point of view.  </span></h3>
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