FxNews—WTI Crude Oil is surpassing the immediate resistance at $70.5 and is trading at approximately $70.8 as of this writing. The Oil 4-hour chart below shows that the bulls are trying to fill the ‘fair value’ gap between $70.5 and $72.1.
Crude Oil Technical Analysis – 17-September-2024
The Oil price is approaching the 100-period simple moving average while the stochastic oscillator hovers in the overbought territory. On the other hand, the RSI 14 has room left to become overbought, depicting 62 in the value.
Additionally, the Awesome oscillator bars are green and above the signal line, meaning the bull market strengthens.
The oil price is also above the supertrend, indicating that the uptrend can extend to higher resistance levels.
Overall, the technical indicators suggest the primary trend is bearish because the price is below the 100 SMA. Still, the consolidation phase can potentially extend to the $72.1 resistance to fill the gap from recent losses.
Crude Oil Price Forecast
The bulls cross above the immediate resistance at $70.5 (September 13 High). The immediate support is the 50-period simple moving average at approximately $68.5, combined with the September 16 low.
From a technical standpoint, the Oil price will likely target $72.1 (August 5 low) if it holds above the immediate support. Furthermore, if the Oil price exceeds $72.1, the next resistance area will be the September 2 low at $73.3.
Crude Oil Bearish Scenario
The downtrend will likely be triggered again If the bears (sellers) close and stabilize the Oil price below the immediate support level of $68.5. If this scenario unfolds, the bears’ path to the September 10 low at $65.5 could be paved.
Please note that the bear market should be invalidated if the Oil price exceeds the 100-period simple moving average of approximately $72.1.
Crude Oil Support and Resistance Levels
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $68.5 / $65.5
- Resistance: $72.1 / $73.3