WTI Crude Oil Teeter: Could Another Drop Be Looming? – Action Forex

Key Highlights

• WTI Crude Oil prices are struggling to clear the $71.20 resistance zone.
• A connecting bearish trend line is forming with resistance at $70.90 on the 4-hour chart.
• Bitcoin corrected gains and traded below the $95,000 support.
• The US GDP could grow 2.8% in Q3 2024 (Preliminary).

WTI Crude Oil Price Technical Analysis

WTI Crude Oil price failed to extend gains above $71.50 and $71.65. It started a fresh decline and traded below the key support at $70.50.

Looking at the 4-hour chart of XTI/USD, the price traded below the 50% Fib retracement level of the upward move from the $66.71 swing low to the $71.65 high. The price even settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

On the downside, the first major support sits near the $68.60 zone. It is close to the 61.8% Fib retracement level of the upward move from the $66.71 swing low to the $71.65 high.

A daily close below $68.60 could open the doors for a larger decline. The next major support is $66.50. Any more losses might send oil prices toward $62.00 in the coming days.

On the upside, it faces resistance near the $70.00 level. The next major resistance is near the $70.80 zone. There is also a connecting bearish trend line forming with resistance at $70.90 on the same chart. The main hurdle is still near the $71.50 zone, above which the price may perhaps accelerate higher.

In the stated case, it could even visit the $72.80 resistance. Any more gains might call for a test of the $75.00 resistance zone in the near term.

Looking at Bitcoin, the bulls struggle to push the price toward the $100,000 level and the price started a downside correction below $95,000.

Economic Releases to Watch Today

• US Initial Jobless Claims – Forecast 217K, versus 213K previous.
• US Durable Goods Orders for Oct 2024 – Forecast +0.5% versus -0.7% previous.
• US Gross Domestic Product for Q3 2024 (Preliminary) – Forecast 2.8% versus previous 2.8%.