FundamentalOverview

Crude oil eventually fellbelow the key 72.00 support zone and kept the bearish trend intact. The bullswill now need to see the price rising back above that level to regain some conviction.

The latest moves came fromthe tariffs fears at the beginning of last week which gave the crude oil pricesa boost initially but were eventually faded as positive talks led to easingtrade war fears.

We’ve also got an upwardspike on Tuesday as Trump reimposed maximum pressure on Iran to stop thenuclear program, but the gains didn’t last as the day after Iran expressedwillingness in reaching a deal.

Crude OilTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that crude oil broke below key 72.00 support zone. We can expect the sellers to pile inaround these levels to keep pushing toward the 67.00 handle. The buyers, on theother hand, will want to see the price rising back above the 72.00 level tostart targeting the 80.00 resistance next.

Crude Oil TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we now have a downward trendlinedefining the current bearish momentum. The trendline stands right around thekey 72.00 level which makes this resistance zone technically stronger.

That’s where we can expectthe sellers to step in with a defined risk above the trendline to position fornew lows, while the buyers will look for a break higher to pile in for a rallyinto the 75.00 handle.

Crude Oil TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart,there’s not much else we can add here as the sellers will look for a rejectionaround the resistance zone, while the buyers will look for a break higher. Wehave a minor support zone around the 70.50 level. If the price breaks below it,we can expect the sellers to increase the bearish bets into new lows. The redlines define the average daily range for today.

UpcomingCatalysts

Tomorrow, we have Fed Chair Powell speaking. On Wednesday, weget the US CPI report. On Thursday, we have the US PPI and the latest USJobless Claims figures. On Friday, we conclude with the US Retail Sales data.