Crude Oil Technical Analysis – October-24-2023
In today’s comprehensive Oil technical analysis, we will first scrutinize the current news for WTI crude oil. Following that, we will meticulously delve into the details of the WTI Crude oil forecast.
Crude Oil Global Events
The price for WTI crude oil called was just under $85 per barrel. Investors think that the conflict between Israel and Hamas is not going to get worse right now. This has lowered the extra amount people were willing to pay more because of the risk of war. Also, the United States has decided to stop most of its sanctions on Venezuela, which is a member of OPEC (an organization of countries that produce oil). This decision was made because Venezuelan leaders have promised to have fair elections next year. (source)
Looking forward, investors are waiting for new reports about how much crude oil is stored in the US.
Oil Technical Analysis
WTI crude oil is currently testing the support level around $84. The RSI indicator has flipped below 50, indicating a bearish bias in the market.
For a more detailed insight into the crude oil trend and price action, we zoom into the 4-hour chart. Here, we see that crude oil is breaking out the bullish channel and has already pushed below the $85.1 support level. With WTI trading below the Ichimoku cloud, it’s likely that we’ll see further decreases to around $82 per barrel.
The $86 mark is acting as resistance, and the bearish scenario remains valid as long as oil trades below this level. However, if oil prices increase and close above $86, it would indicate a false breakout from the current channel, and the bullish channel could regain validity.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.