WTI crude oil price CFDs has been trading within a tight, two-dollar-fifty-cent range for the past few trading days. Since April 23, the commodity has been bouncing off support at $10.24 and resistance at $12.81. As of this writing, WTI crude oil price CFDs is at $10.51.
Crude oil price found bids in the markets last week following US President Trump’s threats against Iran. Towards the end of Friday’s trading, the commodity was boosted by news that the US government is considering acquiring stakes in energy companies.
Now the big question is, will the rally in oil last? Escalating tensions between the US and Iran and a more tangible plan from the US government in guiding oil companies out of the current energy turmoil could be bullish for the commodity. On the other hand, worsening economic conditions amid the coronavirus pandemic could once again weigh down crude oil price.
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WTI Crude Oil Price Outlook
On the 4-hour time frame, it can be seen that WTI crude oil price CFDs seems to be consolidating around the $11.00 handle. Because this follows after a strong bullish run, a bullish flag has formed. This suggests that there could be buyers in the market who could push crude oil price higher. A close above the high of April 23 at $12.74 could mean that the commodity could be headed to the confluence of resistance around $18.85. For one, this price aligns with the falling trend line from connecting the highs of February 20, March 4, and April 9. It also coincides with the 100 SMA. Lastly, by drawing the Fibonacci retracement tool from the high of April 9 to the low of April 21, it can be seen that this price also equates to the 61.8% Fib level.
On the contrary, a close below the bottom of the consolidation at $10.07 could mean that WTI crude oil price may soon head lower to its April 21 lows at $3.42.
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