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WTI Crude Oil Prices Meets Stiff Resistance—Will Bulls Push Through?

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Aayush Jindal

Key Highlights

  • WTI Crude Oil prices started a recovery wave from the $70.80 support.
  • It cleared a key bearish trend line with resistance at $72.20 on the 4-hour chart.
  • Gold prices started a downside correction from the record high of $2,942.
  • EUR/USD is attempting to start a fresh increase above the 1.0380 resistance level.

WTI Crude Oil Price Technical Analysis

WTI Crude Oil price started a major decline below $75.00. The price declined below the $73.00 and $72.00 levels before the bulls appeared.

Looking at the 4-hour chart of XTI/USD, the price settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). A low was formed at $70.87 and the price is now correcting some losses.

There was a move above the $71.50 and $72.00 levels. The price cleared a key bearish trend line with resistance at $72.20 on the same chart. It even spiked above the 23.6% Fib retracement level of the downward move from the $80.76 swing high to the $70.87 low.

On the upside, the price is facing hurdles near the $73.50 level. The main hurdle is now near the $74.00 zone and the 100 simple moving average (red, 4-hour), above which the price may perhaps accelerate higher.

In the stated case, it could even visit the $75.80 resistance. Any more gains might call for a test of the $78.00 resistance zone in the near term.

On the downside, the first major support sits near the $72.20 zone. A daily close below $72.20 could open the doors for a larger decline. The next major support is $70.80. Any more losses might send oil prices toward $68.00 in the coming days.

Looking at Gold, there was a strong increase above the $2,900 level and the price is now correcting some gains.

Economic Releases to Watch Today

  • UK GDP for Q4 2024 (Preliminary) (QoQ) - Forecast -0.1%, versus 0% previous.
  • US Initial Jobless Claims - Forecast 215K, versus 219K previous.
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