Crude Oil Technical Analysis / Commodity Trading Analysis

Crude Oil Technical Analysis – 2-August-2024

The oil price dipped to $76.7 after it broke the $78.3 with a long-bodied bearish candlestick in yesterday’s trading session. As of writing, Crude Oil trades at approximately $77.5, 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.

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.

Crude Oil Technical Analysis – 2-August-2024

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

Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.