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The Crude Oil Price Could Decline Further

June 23, 2022

  • Crude Oil price declined rapidly from the $113.00 level.
  • Bullish trend line broken near $117.00.

The West Texas Crude Oil price found strong resistance near the $125 level. WTI/USD broke below support at $115.00 and continued to decline.

WTI/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the XTI/USD price broke below a bullish trend line with support near $117.00. The price even broke below the $113.00 level, and both the 100-MA (red) and 200-MA (blue). The price gained momentum after breaking below the $110.00 level, and traded as low as $104.00 before correcting higher. Next there was a test of the $109.00 resistance level, which is also close to the 50% Fibonacci retracement level of the downward move from the swing high of $113.41 to the swing low of $103.53. The price is currently trading slightly lower at $105.30.

For the price to continue bearish, it will first need to test support near the $98.00 level. Below this there is further support near $95.50. A break below here could trigger a move down towards the $92.50 level. Further losses could see the price drop down as far as the $88.00 support level.

In contrast, if the price turns bullish, it will first have to test resistance near the  $106.00 and the 23.6% Fibonacci retracement level (of the $113.41 high to the $103.53 low). Above this there is further resistance near $109.00 and the 50% Fibonacci retracement level (of the $113.41 high to the $103.53 low). A break above here could see the price climb up towards the $113.00 level. Further gains could take the price back up as high as $115.00.

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