WTI has stabilized in the $70-$74 range over the past two weeks as the market remains uncertain about future supply and demand prospects.
On the supply side, the tensions in the Red Sea are still there, and the change in the route of the ships will increase the transportation costs. On the other hand, Saudi Arabia announced on Monday that it will lower its official selling price for oil exports, which led to a sharp selloff.
Such a decision may be a sign that demand is weaker than expected and that Saudi Arabia is trying to sell its entire production.
In addition, data from major economies appears to be consolidating and the market is debating whether the impending rate cut by central banks will provide a fresh outlook.
daily chart,
We can see crude continue to test the main trend line as uncertainty in the market leads to some tentative price moves.
Sellers should continue to accumulate around the risk-defined trend line to drive the price to the $64 area.
On the other hand, buyers want to see the price higher and target the $80 level.
4 hour chart,
We can clearly see limited price action between the $70 support and $74 resistance.
Buyers should push the price above the $75.74 level to gain more confidence to climb to the $80 resistance.
On the other hand, sellers want to see the price break below the $70 level to extend bearish bets to the $64 support.
1 hour chart,
We can look more closely at recent price action between key levels where sellers are likely to enter around these levels with defined risk above the $74 resistance.
Other than that, there isn't much to do here as traders just have to wait for the right setup.
On the supply side, the tensions in the Red Sea are still there, and the change in the route of the ships will increase the transportation costs. On the other hand, Saudi Arabia announced on Monday that it will lower its official selling price for oil exports, which led to a sharp selloff.
Such a decision may be a sign that demand is weaker than expected and that Saudi Arabia is trying to sell its entire production.
In addition, data from major economies appears to be consolidating and the market is debating whether the impending rate cut by central banks will provide a fresh outlook.
daily chart,
We can see crude continue to test the main trend line as uncertainty in the market leads to some tentative price moves.
Sellers should continue to accumulate around the risk-defined trend line to drive the price to the $64 area.
On the other hand, buyers want to see the price higher and target the $80 level.
4 hour chart,
We can clearly see limited price action between the $70 support and $74 resistance.
Buyers should push the price above the $75.74 level to gain more confidence to climb to the $80 resistance.
On the other hand, sellers want to see the price break below the $70 level to extend bearish bets to the $64 support.
1 hour chart,
We can look more closely at recent price action between key levels where sellers are likely to enter around these levels with defined risk above the $74 resistance.
Other than that, there isn't much to do here as traders just have to wait for the right setup.