Oil Tests Key Resistance: Will the Year Close on a High Note?

As we approach the last two trading days of 2024, WTI oil is attempting to close the year on a positive note. The chart reveals an interesting setup as the price seeks to break free from a sideways trend that has persisted since September.

This year has been challenging for oil. After an upswing in the early months, the price saw a significant decline starting in April, ultimately reaching yearly lows in September. Since then, oil has been trading within a consolidation range, reflecting uncertainty among traders.

At the start of this week, WTI is testing key technical levels. The price is supported by a red uptrend line while being capped by a black downtrend line, which is now being challenged. If the price closes a day above the black downtrend line, it would signal a potential breakout and generate a buy signal, aligning with a positive year-end sentiment.

Conversely, if the price fails to break this resistance and bounces off the black downtrend line, it would indicate continued weakness and a signal to go short. This critical juncture will determine whether oil can end the year with a bullish move or remain constrained within its sideways trend.

Source: https://www.axiory.com/analytics/technical-analysis/oil-tests-key-resistance-will-the-year-close-on-a