Oil is trading lower at the beginning of the new week. Crude prices launched this week's trading with a small bullish price gap but those gains were quickly erased and now oil is lower on the day. While Israeli ground forces have intensified ground operations in Gaza Strip, there are no signs of intervention by other countries or the conflict spilling over across the border region. As such its impact on the oil market is small and some relief could be spotted on the crude prices after the weekend.
Taking a look at the WTI chart (OIL.WTI) at the H4 interval, we can see that the price has been trading sideways recently. A recent attempt to break above the resistance zone ranging below 50% retracement and marked with 50-period moving average (green line) turned out to be a failure and price pulled back to the support zone marked with 61.8% retracement, where the upward trendline also runs. Bears didn't manage to break below this area earlier today and now it seems that buyers are taking back control over the market. A long lower wick painted in the support zone heralds the possibility of the rebound.
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Source: xStation5
