Here's one for all of you commodity traders!
Look at these WTI crude oil inflection points for the near future.
The commodity has been drifting sideways for a while, and it appears that it is currently trapped inside an even smaller range.
Crude oil has been oscillating back and forth between support at roughly $64-67 per barrel and resistance at around $80 per barrel, as can be seen on the above 4-hour chart.
Price recently rose off the floor and is presently at the center of the range, near the region of interest.
Considering that this area has also been acting as resistance for a while, it appears that the recent gap upward was insufficient to lift the price of the commodity over the ceiling.
Crude oil may be refocusing on the longer-term range bottom from here, as the moving averages seem to be indicating. After all, the 200 SMA is acting as dynamic resistance when the 100 SMA is below it.
The crude oil bulls may still be able to advance, though, as Stochastic has still room to rise before suggesting buyer tiredness.
Watch out because a break above the $74-75 per barrel area could be enough to allow for another rise up to the top of the huge range.
Remember that the OPEC+ recently announced voluntary output cutbacks, meaning that the world's supply may stay constrained despite a potential increase in demand. When trading this risk asset, just be sure to keep an eye on risk sentiment.
