The oil price dipped to $76.7 after it broke the $78.3 with a long-bodied bearish candlestick in yesterday’s trading session. Crude Oil trades at approximately $77.5 as of writing, bouncing from the critical resistance at $76.7. Meanwhile, the awesome oscillator flipped below the signal line, suggesting the bear market gains strength.
The 4-hour chart below demonstrates the price, key support and resistance levels, and the technical indicators utilized in today’s analysis.
Crude Oil Technical Analysis – 2-August-2024
There is no significant candlestick pattern in the WTI Crude Oil 4-hour chart, but the 1-hour chart formed a hammer candlestick pattern as the price filled the ‘fail value gap.’ Furthermore, the MACD crossed the 1-hour chart, signaling a bullish market gains momentum. The diagram below shows the Oil 1-hour chart.
WTI Crude Oil Forecast – 2-August-2024
The primary trend is bearish because the oil price is below the 50- and 100-period simple moving averages. However, from a technical standpoint, the price will likely test the active resistance at $75.7. The bullish strategy should be invalidated if the price dips below $75, which could result in the price retesting July’s all-time low at $75.1.
- Also read: AUD/USD Technical Analysis – 2-August-2024
Oil Key Support and Resistance Levels – 2-August-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $76.7 / $75.1
- Resistance: $78.3 / $79.3