Wednesday's Asian session saw WTI edging lower despite the absence of follow-through selling.
The dark liquid is still being driven by worries about Russian supply interruptions.
The argument that dip-buying has emerged is supported by a breakout through a short-term ascending channel.
During Wednesday's Asian session, West Texas Intermediate (WTI) US Crude Oil prices dipped slightly as they failed to build on the robust recovery gains of the previous three days. However, the commodity maintains its $64.00 mark despite worries over delays in Russian supplies.
Technically speaking, the overnight breach from a multi-month low hit earlier this month through a short-term ascending trend-channel was viewed as a major bullish trigger. Additionally, positive oscillators on hourly and daily charts support the idea that some dip-buying may develop at lower levels and indicate that the path of least resistance for crude oil prices is upward.
However, a decline below $64.00, which is also the ascending channel resistance breakpoint, might lead to technical selling and push the commodity to the next pertinent support level, which is close to $63.50-$63.45. The subsequent decline would imply that the recovery effort has reached a breaking point, leaving crude oil prices susceptible to quickening the decline and testing below $63.00 levels.
Before the black liquid finally drops below the $62.00 mark and tests the lower border of the aforementioned channel, which is currently estimated to be in the $61.80-$61.75 range, the falling trend may continue towards the $62.20 intermediate support.
Conversely, a two-week high reached on Tuesday, or the $64.40 region, may present an immediate barrier, above which crude oil prices may seek to regain the psychological $65.00 mark. Further rises towards the $65.50-$65.60 barrier, if cleared, would confirm the positive setup and lead to another round of short-covering. This would be made possible by some follow-through buying.
The dark liquid is still being driven by worries about Russian supply interruptions.
The argument that dip-buying has emerged is supported by a breakout through a short-term ascending channel.
During Wednesday's Asian session, West Texas Intermediate (WTI) US Crude Oil prices dipped slightly as they failed to build on the robust recovery gains of the previous three days. However, the commodity maintains its $64.00 mark despite worries over delays in Russian supplies.
Technically speaking, the overnight breach from a multi-month low hit earlier this month through a short-term ascending trend-channel was viewed as a major bullish trigger. Additionally, positive oscillators on hourly and daily charts support the idea that some dip-buying may develop at lower levels and indicate that the path of least resistance for crude oil prices is upward.
However, a decline below $64.00, which is also the ascending channel resistance breakpoint, might lead to technical selling and push the commodity to the next pertinent support level, which is close to $63.50-$63.45. The subsequent decline would imply that the recovery effort has reached a breaking point, leaving crude oil prices susceptible to quickening the decline and testing below $63.00 levels.
Before the black liquid finally drops below the $62.00 mark and tests the lower border of the aforementioned channel, which is currently estimated to be in the $61.80-$61.75 range, the falling trend may continue towards the $62.20 intermediate support.
Conversely, a two-week high reached on Tuesday, or the $64.40 region, may present an immediate barrier, above which crude oil prices may seek to regain the psychological $65.00 mark. Further rises towards the $65.50-$65.60 barrier, if cleared, would confirm the positive setup and lead to another round of short-covering. This would be made possible by some follow-through buying.
