The Price of Crude Oil Could Break And Gain Higher, Next is US CPI Report
- The price of crude oil began a steady rise from the $72.50 region.
- On the 4-hours chart, a significant bullish trend line is developing with support close to $75.20.
- If the price of bitcoin surpasses the $18,000 resistance, it might increase.
Technical Analysis of Crude Oil
The $81.50 resistance level for crude oil against the US dollar marked the beginning of a new slump. Price fell below $78 but found support close to the $72.50 region.
On the XTI/USD 4-hours chart, the price dropped as low as $72.42. Above the $74 and $74.50 resistance levels, there was recently a respectable gain. The 38.2% Fib retracement level of the decline from the $81.45 swing high to the $72.42 low was successfully crossed by the price.
The 100 simple moving average (red, 4-hours) and the 200 simple moving average, however, appear to be major obstacles for the price. It is also very near the level of the 50% Fibonacci retracement of the decline from the $72.42 low to the $81.45 swing high.
The $78 area represents the next significant resistance. Another steady rise toward $82 or perhaps $84 could be possible with a clear break above the $78 resistance.
If not, the cost could return to $78. Near the $75.20 region, an immediate support is currently developing. On the same chart, a significant bullish trend line with support close to $75.20 is also developing.
Near the $73.20 mark, the next significant support is located. The $72.40 support area may need to be tested in the upcoming days if there are any additional losses.
Although there was an upward break above the $17,000 level in terms of the price of bitcoin, there are still numerous obstacles to the upside.
Economic News To Trade Today
- US Initial Jobless Claims: 215K expected, up from 204K in the previous period.
- Forecast for the US Consumer Price Index for December 2022 (YoY) is +6.5%, up from the previous +7.1%.
Author: Amogo Solomon
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