WTI reaches key resistance zone

Crude oil prices have been stealthily rising over the past couple of weeks, but now is the real test as prices have reached some important resistance levels.

As per the chart, WTI faces a band of resistance from its bearish trend line, 200-day moving average, and prior support and resistance, all converging around the psychologically important $75.00 level.

Specifically, the resistance range comes in between $74.55 to $77.50. Yesterday's bearish price candle was the first sign of a potential reversal, although we haven't yet seen any downside follow-through.

Support comes in around $71.50, the base of the recent breakout. Below that, $70.00 is the next downside target, followed by the recent lows.

By Fawad Razaqzada, market analyst at FOREX.com