Crude bulls lean on 71.99 weekly support

• Crude oil bullish on W1 timeframe

• Strong support level found at 71.99

• Stochastic Oscillator bullish

• 4 potential targets on H4 timeframe

• Bullish scenario invalidated below 71.39

Crude oil prices dropped like a rock last week as a correction wave in the current uptrend played out on the weekly charts.

Prices have found bullish backing on a strong weekly support level at 71.99 with demand potentially picking up from there.

On the daily chart, we can see the fractal nature of the market in action and the weekly correction wave shows a down trend on the daily chart. Here a new correction wave is in progress in the current down trend. Conservative traders might wait for a daily market structure to change before looking for opportunities, while more aggressive traders might consider a long opportunity off the weekly support level. This can be explored further on the 4-hour chart.

On the 4-hour chart, a magnificent downtrend can be seen, stretching from the weekly resistance level at 76.88, all the way down to the weekly support level at 71.99. The bears made a last lower bottom and currently, the bulls are keeping the price above the weekly support level, with a possible early stage of a new uptrend on the books.

The price broke the downtrend and the shorter price cycle Stochastics Oscillator confirms the bullish momentum, but the longer price cycle Moving Average Convergence Divergence (MACD) Oscillator warns that there might still be a re-test of the weekly support level.

If the price reaches the 73.34 level, a long opportunity becomes possible.

Attaching a modified Fibonacci tool to the trigger level at 73.34 and dragging it to the last lower bottom at 71.39, four conservative targets can be determined:

Target 1: 74.12

Target 2: 74.51

Target 3: 75.29

Target 4: 76.27

If the price breaks past the 71.39 level, this opportunity is no longer likely, and a short opportunity might become possible from a 4-hour market structure point of view.