U.S. crude oil prices just popped up a red candlestick around a key inflection point!

Are we taking a look at Black Crack potentially extending its long-term downtrend?

The 4-hour chart may give us more clues:

WTI Crude Oil (USOIL) 4-hour Chart by TradingView

In case you missed it, increased geopolitical tensions within the Middle East, optimism over lower U.S. rates of interest, and tighter global supply have helped prop up U.S. crude oil prices in the previous few days.

WTI crude (USOIL), which hit bottom near $65.25 last week, is now trading closer to the $70.00 mark.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. In the event you haven’t yet done your homework on crude oil and market sentiment, then it’s time to ascertain out the economic calendar and stay updated on day by day fundamental news!

But that was yesterday. USOIL looks prefer it hit a ceiling near $70.50, which lines up with a mid-channel resistance within the 4-hour time-frame.

The potential resistance area is more interesting since it’s not too removed from the 38.2% – 50% Fib retracement area and the R1 ($71.23) Pivot Point line on the chart.

Is USOIL able to extend its downtrend?

We’re keeping close tabs on the present red candlestick to see if the bearish momentum is sustained below the $70.00 handle. A move to the $66.25 previous lows could also be within the cards if USOIL continues to see bearish pressure.

An prolonged upswing isn’t out of the table either.

Look out for bullish candlesticks and consistent trading above $72.00 and the 100 and 200 SMAs. Green candlesticks above the potential resistance zone could set USOIL up for an upside breakout and a retest of the $76.00 and $78.00 previous areas of interest.