WTI Crude Oil Technical Analysis – Watch what happens around this key support

<p>Crude Oil prices remained
supported in the past two weeks as the geopolitical risk in the Middle East
stayed high around the Israel-Hamas war and possibility of a larger conflict
comprising other Arab countries, especially Iran. We’ve been seeing a clear
pattern of large rallies into the weekends as the market feared escalations
given the Israel’s intention of a ground offensive in Gaza. Once again, we
haven’t got any ground operation and we have even seen some hostages being
released. This has led to a quick erase of the geopolitical risk premium seen
in the past two weeks. Nevertheless, the Middle East will remain a focal point
for now. </p><p>WTI Crude Oil Technical
Analysis – Daily Timeframe</p><p>On the daily chart, we can see that Crude Oil found
resistance around the <a href="https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/">trendline</a>, the red
21 <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving average</a> and the
50% <a href="https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/">Fibonacci retracement</a> level,
but eventually faked out the buyers as the price spiked higher into the 61.8%
Fibonacci retracement level before erasing all the gains of the past two weeks.
</p><p>The price is now back at the key <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">support</a> around
the $83 level where we can expect the buyers to step in again with a defined
risk below the level to position for another rally into the highs. The sellers,
on the other hand, will want to see a break to the downside to invalidate the
bullish setup and start targeting the lows around the $65 level. </p><p>WTI Crude Oil
Technical Analysis – 4 hour Timeframe</p><p>On the 4 hour chart, we can see that we have what
could turn out to be a <a href="https://www.forexlive.com/Education/chart-patterns-guide-20220125/">bear flag</a> if the
price continues lower and breaks below the key support. At the moment, it’s
hard to envision such a scenario given the high geopolitical risk around the
Israel-Hamas war but there’s also global growth to worry about and the recent
data suggest that there’s weakness creeping in slowly.</p><p>WTI Crude Oil Technical
Analysis – 1 hour Timeframe</p><p>On the 1 hour chart, we can see that from
a risk management perspective, the sellers would be better off waiting for the
price to pull back into the trendline where they will also find the <a href="https://www.forexlive.com/Education/technical-analysis-confluence-20220318/">confluence</a> with
the red 21 moving average and the Fibonacci retracement levels. A break above
the trendline should invalidate the bearish setup and trigger more bullish bets
from the buyers leading to a rally back to the $88 price area. </p><p>Upcoming Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">Tomorrow</a> we will see the latest US Jobless Claims data
with the market likely focusing on the Continuing Claims figures as they’ve
missed expectations two times in a row already and might be a signal that the
labour market is weakening. On Friday, we will get the US PCE report which is
unlikely to change anything for the near-term policy outlook.</p>

This article was written by FL Contributors at www.forexlive.com.