WTI crude oil (US Oil): Bearish channel testing key support
It seems like only yesterday when oil prices were surging on Russia’s invasion of Ukraine, and analysts were predicting that the commodity could rise to $200 in short order. Since those fearful days in March however, supply has incrementally come into the market and demand has slackened, due in no small part to the high prices themselves.
Looking at the chart of WTI (US Oil), prices have definitively broken below the bullish trend line the characterized the entire uptrend through the first half of the year and indeed formed a new bearish channel since the start of June. The commodity is now testing a critical support level at 94.00; a close below this area would mark the lowest since February and pave the way for a deeper retracement toward the 61.8% Fibonacci retracement near $88 next.
Meanwhile, bulls would need to see prices bounce from support at $94 and break out of the current bearish channel to grow more optimistic on oil remaining sustainably in the triple digits as we head into August.
One way or another, crude oil should get a clear technical break in the coming days!
Looking at the chart of WTI (US Oil), prices have definitively broken below the bullish trend line the characterized the entire uptrend through the first half of the year and indeed formed a new bearish channel since the start of June. The commodity is now testing a critical support level at 94.00; a close below this area would mark the lowest since February and pave the way for a deeper retracement toward the 61.8% Fibonacci retracement near $88 next.
Meanwhile, bulls would need to see prices bounce from support at $94 and break out of the current bearish channel to grow more optimistic on oil remaining sustainably in the triple digits as we head into August.
One way or another, crude oil should get a clear technical break in the coming days!