WTI: Bullish Outlook Intact Despite Temporary Pullback 3/7/2024

US crude oil futures prices reached our previously identified target of 84.20, peaking at $84.35 per barrel, before experiencing a slight pullback to retest the 83.00 level.

Technical Outlook:

Despite the recent correction, the technical outlook remains bullish. The 240-minute chart reveals that the simple moving averages (SMAs) are still providing support for the upward price movement, encouraging us to maintain our positive expectations.

Upward Potential:

The upward trend is likely to continue, provided that the price breaks above the 83.90 resistance level. This would pave the way for a move towards 85.00, followed by 85.70.

Downside Risks:

However, traders should remain cautious as a failure to consolidate above 82.50 could lead to a temporary correction, potentially targeting 80.90.

Key Levels:

• Support: 82.50, 80.90
• Resistance: 83.90, 85.00, 85.70

Important Note:

The release of the U.S. ADP Non-Farm Employment Change report today could induce significant price volatility. Traders are advised to closely monitor the market’s reaction to this high-impact economic data.

Disclaimer: Trading in CFDs carries inherent risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for WTI crude oil.

S1: 82.50	R1: 84.10
S2: 81.80	R2: 85.05
S3: 80.90	R3: 85.70