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Crude Oil Price Fails Again at $78.80, Are Dips Supported?

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Aayush Jindal

Key Highlights

  • Crude oil prices failed again to clear the $78.80 and $79.20 levels.
  • It traded below a major bullish trend line with support at $77.65 on the 4-hour chart.
  • Gold prices could gain bullish momentum above $2,032.
  • The US Manufacturing PMI could remain stable at 50.5 in Feb 2024 (Preliminary).

Crude Oil Price Technical Analysis

In the past few days, Crude oil prices saw a strong increase above the $75.00 level. The price climbed above $76.50 to move into a positive zone.

Looking at the 4-hour chart of XTI/USD, the price settled above the $76.50 zone, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).

Finally, the price climbed above the $78.00 level. However, the bears were again active near the $78.80 and $79.00 levels. A high was formed at $78.75 and the price reacted to the downside. There was a break below the $78.00 support.

Besides, the price traded below a major bullish trend line with support at $77.65 on the same chart. The first major support on the downside is near the $76.00 level or the 100 simple moving average (red, 4-hour).

The 38.2% Fib retracement level of the upward move from the $71.35 swing low to the $78.75 high is also near the $76.00 zone. The next major support is at $74.20, below which the price might test $73.10. Any more losses might send oil prices toward $71.80.

On the upside, the price is facing hurdles near the $78.40 level. The next major resistance is near the $78.80 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $80.00 resistance.

Looking at gold prices, the bulls are aiming for a recovery wave above the $2,035 and $2,040 resistance levels.

Economic Releases to Watch Today

  • Germany’s Manufacturing PMI for Feb 2024 (Preliminary) - Forecast 46.1, versus 45.5 previous.
  • Germany’s Services PMI for Feb 2024 (Preliminary) - Forecast 48.0, versus 47.7 previous.
  • Euro Zone Manufacturing PMI for Feb 2024 (Preliminary) – Forecast 47.0, versus 46.6 previous.
  • Euro Zone Services PMI for Feb 2024 (Preliminary) – Forecast 48.8, versus 48.4 previous.
  • US Manufacturing PMI for Feb 2024 (Preliminary) – Forecast 50.5, versus 50.7 previous.
  • US Services PMI for Feb 2024 (Preliminary) – Forecast 52.0, versus 52.5 previous.
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