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WTI Crude Oil Regains Strength: Can The Uptrend Continue?

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Aayush Jindal

Key Highlights

  • WTI Crude Oil prices started a fresh increase above the $71.50 resistance zone.
  • A connecting bullish trend line is forming with support at $71.20 on the 4-hour chart.
  • Gold prices could advance if there is a clear move above $2,650.
  • EUR/USD must surpass 1.0420 to start a decent recovery wave.

WTI Crude Oil Price Technical Analysis

WTI Crude Oil price found support near the $68.80 zone. A base was formed and the price started a fresh increase above $70.00.

Looking at the 4-hour chart of XTI/USD, the price traded gained pace for a move above the $71.50 resistance zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The bulls even pushed prices above the $74.00 level. A high was formed at $75.11 and the price is now consolidating gains. There was a minor decline below the 23.6% Fib retracement level of the upward move from the $68.79 swing low to the $75.11 high.

There is also a connecting bullish trend line forming with support at $71.20 on the same chart. The trend line is close to the 61.8% Fib retracement level of the upward move from the $68.79 swing low to the $75.11 high.

On the upside, the price is facing hurdles near the $74.20 level. The main hurdle is still near the $75.00 zone, above which the price may perhaps accelerate higher.

In the stated case, it could even visit the $76.50 resistance. Any more gains might call for a test of the $78.00 resistance zone in the near term. On the downside, the first major support sits near the $72.70 zone.

A daily close below $72.70 could open the doors for a larger decline. The next major support is $71.20. Any more losses might send oil prices toward $70.00 in the coming days.

Looking at Gold, there was a steady increase above the $2,620 level and the bulls could now aim for a move above $2,650.

Economic Releases to Watch Today

  • US ISM Services Index for Dec 2024 – Forecast 53.0, versus 52.1 previous.
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