Crude Oil Technical Analysis – We are stuck in a range

Fundamental
Overview

Crude oil remains confined
in a range between the 72.00 resistance and the 67.00 support as the market
continues to weigh the future scenarios.

On one hand, we have the
Trump’s victory which might be seen as bearish due to increased supply and for fear of
the tariffs and a slowdown in global growth as other countries could retaliate.

On the other hand, the red
sweep should see Trump focusing more on tax cuts and domestic issues first which
should eventually lift global growth expectations. If we had a divided
Congress, then his first priority could have been indeed a trade war.

Moreover, we have also central
banks easing their monetary policies and that generally leads the manufacturing
cycle, which is likely to be supportive for the crude oil market.

Crude Oil
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that crude oil continues to range between the resistance around the 72.00 handle and the
support around the 67.00 handle. The market participants will likely keep on
playing the range until we get a breakout.

Crude Oil Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have another important zone in the middle of the range around the 69.50
level. The buyers will want to see the price breaking higher to pile in for a
rally into the 72.00 resistance. The sellers, on the other hand, will likely
step in here to position for a drop back to the 67.00 support.

Crude Oil Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see more clearly the recent price action. There’s not much else we can glean
from this timeframe as we remain confined in a range. The red lines define the average daily range for today.

Upcoming
Catalysts

Today we get the latest US Jobless Claims figures, while tomorrow we conclude
the week with the US PMIs.

This article was written by Giuseppe Dellamotta at www.forexlive.com.