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WTI Crude Consolidating with Bullish Bias

WTI Crude oil peaked so far this year at 107.56, a high from 2 weeks ago, when tensions in Iraq was brought to light. It has since consolidated, with support just above 105, where we had previous resistance, which went back to March. From a compacted 4H chart, you can see that the break above 105 2 weeks ago was a bullish continuation. Simply by looking at price action and the moving averages, you can see a bullish trend.

(wti crude oil, 4h chart, 6/24)

The 4H RSI also reflects maintenance of bullish momentum in the 4H chart so far as it fell but held above 40. If price can hold above 105, and the 4H RSI above 40, the bullish outlook remains in play, and the market is poised to test the 107.56 high. A break above that confirms the bullish breakout from 2 weeks ago, and opens up the 110 psychological handle.

A break below 105 opens up the next support/resistance pivot area around 104. At this point, price might also be challenged by a rising trendline that started in May. Ability to hold above 104 can still confirm the bullish breakout earlier this month.