WTI Crude Oil Near $73.67: Can Bulls Break Through $74.36 Resistance?
WTI crude oil prices held steady at $73.67 on Monday, maintaining their position within a well-defined rising channel.
This comes after a five-session rally fueled by improving demand prospects due to colder Northern Hemisphere weather and fiscal stimulus from China. However, a stronger U.S. dollar and investor caution ahead of key economic data from the Federal Reserve are tempering further gains.
The pivot point at $73.43 remains critical for short-term direction. A breakout above immediate resistance at $74.36 could push prices toward $75.18 and $76.04, supported by bullish sentiment. Conversely, a drop below $73.43 may signal weakness, with $72.53 and $71.39 serving as key support levels.
Key Factors Impacting Crude Oil Prices
Several factors are influencing oil’s current trajectory:
- Stronger U.S. Dollar: The dollar is trading near a two-year high, making crude oil, priced in USD, more expensive for buyers using other currencies.
- Federal Reserve Expectations: Investors are closely watching Fed minutes (due Wednesday) and the December payrolls report (due Friday) for signs of future rate hikes and their impact on energy consumption.
- Sanctions and Supply Risks: The Biden administration is preparing further sanctions on Russia, targeting crude oil shipments, while tightening policies on Iran could reduce production by 300,000 barrels per day in Q2 2025, according to Goldman Sachs.
Daily Technical Outlook: WTI Crude Oil – January 6, 2025
WTI Crude Oil prices remain within a rising channel, maintaining a bullish bias despite recent consolidation near $73.67. The pivot point at $73.43 serves as a key level for intraday direction. Immediate resistance is seen at $74.36, with further targets at $75.18 and $76.04 if upward momentum resumes.
Conversely, immediate support is established at $73.43, followed by critical levels at $72.53 and $71.39. The RSI signals moderation, while the 50 EMA at $72.53 underpins the bullish structure.
Key Insights:
- Pivot Level: $73.43 will dictate near-term bias; a breakout above $74.36 may trigger further gains.
- Support Zones: Watch $73.43 and $72.53 for potential price rebounds.
- Resistance Levels: Targets include $75.18 and $76.04 if bullish momentum continues.
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