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Oil - WTI Crude to Test Support Around 34

After a rally from the low on the year near 26 up to 41.80, USDWTI started to retreat as we can see in the 4H chart. 

USDWTI 4H Chart 4/5

(click to enlarge)

We can see that price has been bearish and there is no sign of a bullish reversal yet. But as price approaches 34-34.50, we should anticipate some buying. 

This area involves a support/resistance pivot area. It is also close to 50% retracement. If we see a bullish divergence between price and the 4H RSI, we should really expect some bullish attempt back towards at least 38. Even a failed attempt has upside risk from 34 to 37. 

If price can clear 39, I think USDWTI would continue have upside risk back towards 41.80 and higher with 43-43.50 as the next key support/pivot area.

USDWTI Daily Chart 4/5

(click to enlarge)

Looking at the daily chart, we can't say USDWTI has turned bullish, but we can say that the prevailing downtrend is struggling because a couple of falling trendlines have been broken. Price broke above the 100-, and 50-day simple moving averages (SMAs), but is still held under the 200-day SMA. Now, if price can hold above the 100- and 50-day SMAs as support, forgiving a brief crack, then we should add to the bullish outlook with 43.35 in sight.

A break below 34 on the other hand puts the 30 level back in sight with downside risk extending back to the 26.00-26.15 area. So, let's monitor this 34 area closely.