Aayush Jindal
Key Highlights
- Crude oil bulls are eyeing an upside break above the $81.00 resistance.
- A major bullish trend line is forming with support at $78.40 on the 4-hour chart.
- Gold prices extended gains above the $2,032 resistance.
- Bitcoin trimmed most losses and could extend its increase above $70,000.
Crude Oil Price Technical Analysis
After struggling above $80.00, Crude oil prices saw a downside correction. However, the bulls were active near the $77.50 zone and protected more downsides.
Looking at the 4-hour chart of XTI/USD, the price remained stable above the $78.00 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).
It started a fresh increase above the $78.80 resistance. There was a move above the 50% Fib retracement level of the downward move from the $80.96 swing high to the $77.60 low. The current price action suggests a high chance of more upsides above $80.00.
On the upside, the price is facing hurdles near the $80.20 level. The next major resistance is near the $81.00 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $84.00 resistance.
If not, the price might decline and test the $78.80 support. The first major support on the downside is near the $78.40 level or the 100 simple moving average (red, 4-hour).
There is also a major bullish trend line forming with support at $78.40 on the same chart. The next major support is at $77.60, below which the price might test $76.60. Any more losses might send oil prices toward $75.00.
Looking at Bitcoin, there was a strong bearish reaction from the $69,200 zone but the bulls were active and pushed the price back above $65,000. The main hurdle now sits at $68,000.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 243K, versus 244K previous.
- Fed's Chair Powell testimony.
