U.S. crude oil prices recently flirted with the $75 mark but have since retreated to around $72.
Curious about what’s driving this movement?
Let’s take a closer look at the 4-hour chart for WTI crude oil and consider whether there’s potential for the bulls to make gains in the coming days.
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Yesterday, crude oil prices took a hit as concerns over tariffs subsided. The U.S., Canada, and Mexico have decided to put their tariff plans on hold, at least temporarily. This news, combined with OPEC+ and its allies sticking to their planned production increases in April, isn’t doing much to boost what’s often called "Black Gold."
It’s important to remember that the direction and volatility of market prices are typically influenced by fundamental factors. If you haven’t yet brushed up on your knowledge of crude oil and the U.S. dollar, now’s a great time to dive into the economic calendar and keep up with daily fundamental news.
WTI crude, which had been hovering just below $75, has taken a noticeable dip and is now lingering around the psychological $72 level. However, the initial drop has lost some momentum. WTI is currently holding just above the S1 Pivot Point at $72.11, a significant level from late 2024.
Is this a buying opportunity?
Bullish candlesticks and buying pressure above $72 could attract WTI bulls, potentially pushing the price towards the Pivot Point around $73.61 or even a revisit to the $75 resistance zone. Conversely, if bearish candles appear or if trading persists below $72, bears might take charge, dragging WTI down to the $70 mark.
No matter which way you lean, remember to employ sound risk management strategies and stay alert to key catalysts that might shift broader market sentiment!
