Crude Oil eases its overnight rally but what's next? – WTI Technical analysis

• WTI Oil kept rising throughout the week with a continuous status quo in the Middle East.
• While the Trump-Xi meeting is ongoing, the US-Iran situation is frozen, hence traders are preparing for the next phase of the trade
• Exploring an in-depth Technical Analysis of Crude Oil

WTI Crude Oil prices have been climbing this week as tensions in the Middle East show no signs of change.

Even though President Trump and Chinese President Xi Jinping are meeting, the US-Iran situation remains unresolved and as a result, traders are getting impatient for the next phase in the Energy Commodity Market.

There are some positive signs for global stability as President Trump and President Xi Jinping seem to somewhat agree on common objective for a peace process.

President Trump says both the US and China believe Iran should not have a nuclear weapon, and that reopening the Strait of Hormuz is very important for China. Beijing agrees, saying there is no real reason for the conflict to continue.

These talks could have a big impact on Asian countries that rely on Gulf energy, and the results of this summit could change global markets in a major way.

Even with some hope from diplomacy, today’s market tells a different story.

The US Dollar is rising quickly, which is pushing down commodity prices and lowering global risk assets.

Crude Oil is also feeling this pressure and has dropped during the early Friday morning – But traders want to look forward and will have to consider what the status quo means for the Commodity.

Since supply problems in the Strait of Hormuz are not fixed and global inventories are low, oil prices are for now remaining underpinned ahead of the weekend.

Now, let's take a closer look at the technical analysis for WTI Crude to see if prices can remain above $100 for long.

Read More:

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WTI led a strong move to the upside to test its $106 resistance (CFD) to retest early May levels.

The US Session brought with it some calm but the immediate action remains quite mixed, with the RSI stable in the bullish region – To learn more, we will have to look closer

WTI Technical Levels:

Resistance Levels

• $106 to $108 June 2022 Resistance
• $110 mini-resistance
• 2022 and Monday highs $117 to $120 (larger channel top)

Support Levels

• $98 to $100 Pivot
• Momentum Support $93 - $95
• $90 Psychological level and past session's lows
• $87 to $90 mini-Support
• $82 Friday 17 lows
• 2025 Highs Key Support $78 to $80

Crude is still following a short-term upward trendline within a bull channel, giving the upper hand to the bulls for immediate action.

• Continuation traders will want to see a continued rebound from here to extend back towards the top of the channel at 107.60 (CFD Prices)
• Bears will want to see a break below the previous bear channel (103.40) with confirmation on a 1H candle close below the 50-Hour MA (102.66)

Safe Trades and Keep your eyes on the news!

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