Oil Technical Analysis: Cooling down in an uptrend

Oil prices are cooling down further as the risk of interruptions in Oil production from the Middle East isn’t taking place. As traders look to be fed up with pricing in a risk premium for something that is still not happening, this sees some capitulation in the Oil price where only $75.28 looks to be only solid support level left refraining from Oil to dip to $70.00.

Still, a turnaround could occur once Oil prices recover back above $78.07, with the 100-day Simple Moving Average (SMA) and the green ascending trend line from December acting as support. Next on the upside, the 200-day SMA at $79.76 and the 55-day SMA at $81.12 are the levels to watch for some profit-taking. In the longer term, $87.12 remains the big level on the upside. 

On the downside, the pivotal level at $75.28 is the last solid line in the sand that could end this decline. If this level is unable to hold, expect to see an accelerated selloff towards $72.00 and $70.00. That would mean that all gains for 2024 are given up and Oil could test $68, the December 13 low