Fundamental
Overview
Crude oil has been under
some strong pressure lately as a mix of negative supply and demand drivers
weighed on the market.
In fact, on the supply
side, OPEC+ recently surprised announcing plans to increase production starting
in April.
The timing of the move
wasn’t good as the markets recently started to worry about the demand side as
growth fears grew amid weaker US data and a selloff in the US stock markets.
Crude Oil
Technical Analysis – Daily Timeframe
Crude Oil Daily
On the daily chart, we can
see that crude oil sold of all the way back to the September 2024 lows. We have
a downward trendline defining he bearish momentum. The sellers will likely lean
on the trendline to position for a drop into the key
63 support zone targeting a break below it. The buyers,
on the other hand, will want to see the price breaking higher to pile in for a
rally back into the 80.00 handle.
Crude Oil Technical
Analysis – 4 hour Timeframe
Crude Oil 4 hour
On the 4 hour chart, we can
see that we have a strong resistance zone around the 68.00 handle where we can
also find the confluence with the trendline. This is where
the sellers will likely step in with a defined risk above the trendline to
position for new lows. The buyers, on the other hand, will look for a break
higher to regain control and start targeting a rally into the 80.00 handle.
Crude Oil Technical
Analysis – 1 hour Timeframe
Crude Oil 1 hour
On the 1 hour chart,
there’s not much else we can add here as the sellers will look for a rejection
around the resistance zone, while the buyers will look for a break higher. The
red lines define the average daily range for today.
Upcoming
Catalysts
Today we conclude the week with the US University of
Michigan Consumer Sentiment report.
