Crude oil rises for fourth session in a row

WTI crude oil rose for a fourth-straight session, on Tuesday. WTI price is boosted by optimism due to the reopening of China’s borders. The Federal Reserve is expected to finetune the pace of future rate hiking in the light of Thursday’s reading of Consumer Price Index, in focus.

The US is expected to report inflation slowed again in December, easing pressure on the Fed to further slow the economy and therefore create a cheaper US dollar environment for overseas investors of oil that could come in more demand.

The technical outlook could be painting a conflicting scenario. Tuesday’s price action could be deemed as a liquidity hunt before the next major move to the downside as the following will illustrate:

There is a bearish bias while being on the front side of the weekly trend and the build-up of horizontal resistances. The daily M-formation is compelling as the neckline is resisting bullish advances towards a 50% mean reversion.