Oil Price Talking Points:
- Oil prices have spent much of the past two weeks recovering after sellers were re-buffed at seven-month-lows.
- WTI crude oil[1] prices have pushed back for a re-test of trendline resistance and this helped to stall the bullish advance last week: Is another bearish turn around-the-corner in oil prices?
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Crude Oil Stabilizes Above 55, Runs into Trendline Resistance
WTI crude oil prices have spent the past two weeks trading higher after re-testing a key support zone on August 7th. That support was the same zone of prices that helped to arrest the April-May sell-off following a 24% decline; and its now held two bearish trends that threatened to break-below the psychological 50-handle.
At this stage, that support bounce has extended and last week brought in a key level of resistance around 57.34, which is confluent with a bearish trend-line taken from late-July swing-highs. That trendline has come back into play after buyers were able to cauterize support above the 54-handle. [8]
WTI Crude Oil Four-Hour Price Chart
Chart prepared by James Stanley; Oil on Tradingview[9][10]
Can Support Hold a Third Test?
The support zone that runs from 50.54-51.64 has now been tested twice in the past three months and each
