WTI Crude Oil Technical Analysis

Crude Oil continues to range in the $70 74 range as the market remains uncertain on the future demand and supply outlook. On the supply side, the tensions in the Red Sea are still present and the recent escalation with the US and UK striking Houthis targets in Yemen made things trickier. On the demand side, the recent data has been mixed but still pointing to a deceleration in economic growth.

Moreover, the latest inflation prints have been going in the wrong direction and with the central bank members pushing back on the aggressive rate cuts expectations, the market started to worry that monetary conditions could remain tighter for longer. On the daily chart, we can see that Crude Oil recently broke above the key but failed to sustain the rally as the price got rejected after rising above the $74 level.

There’s not much to glean from this timeframe as the market continues to consolidate waiting for a catalyst to push it in either direction. On the 4 hour chart, we can see that the price has been trading inside a rising channel with the price bouncing from the lower bound of the channel several times.

We can expect the buyers to lean on the lower bound again, but we also have a trendline below it that is pretty close. In this case, the buyers might want to split their order to position for a rally into the $80 level. On the 1 hour chart, we can see more closely the current price action with the price reacting to the lower bound of the channel.

If we do get a bounce, the buyers will need the price to break above the $73 to increase the bullish bets into the $80 level. The sellers, on the other hand, will want to see the price breaking lower to keep pushing for lower prices and upon a break below the black trendline, target the $64 support.

, we will get the US Retail Sales and Industrial Production data, while tomorrow we will see the latest US Jobless Claims figures. On Friday, we conclude the week with the University of Michigan Consumer Sentiment survey. Weak data is likely to weigh on Crude Oil as demand fears would grow even stronger.

On the other hand, strong figures might keep the market supported..