The West Texas Intermediate (WTI) crude oil market has been on the move, with prices breaking above the resistance of a falling price channel on the 4-hour chart. This bullish breakout now puts the resistance level at $80.04 in the spotlight.
Potential for Further Upside
If WTI manages to surpass the $80.04 resistance, it could signal that the previous downside move from $87.07 to $76.01 has completed. In such a scenario, the next target for bulls would be the $81.80 area, followed by the $84.00 region.
Support Levels to Watch
On the downside, the initial support level for WTI is $78.70. A breakdown below this level could trigger another fall, potentially retesting the $76.01 support zone.
A move below $76.01 could signal a resumption of the broader downtrend that began from the $87.07 level, with the next target then becoming the $72.60 area.
In summary, WTI crude oil has shown strength by breaking above a falling price channel, setting up a potential rally towards $81.80 and $84.00 if it can clear the $80.04 resistance. However, traders should also keep an eye on the mentioned support levels, as a breach of these areas could reignite the downside momentum.