Crude oil prices have experienced sharp fluctuations over the past few days, with a sudden drop from $71 per barrel to below $58, before experiencing a limited corrective rebound. In this technical analysis, we review the current performance of oil and evaluate potential trading opportunities based on key technical indicators and price levels.
Today’s Oil Movement | Price Fluctuations After the Strong Drop
- Current Price: 59.30
- Session High: 60.27
- Session Low: 59.19
- General Trend: Bearish
Prices witnessed strong selling that began in early April, resulting in successive breaks of technical support. Currently, the price is moving sideways in an attempt to establish a new price base below the 61.00 level.
Crude Oil Technical Analysis | A Close Reading of Technical Indicators
General Trend:
The general trend remains clearly bearish in the short term, as all moving averages (20, 50, and 100) are moving downward, with selling pressure likely to continue.
Technical Indicators:
- MACD: It has begun to reduce negative momentum, showing a potential bullish crossover, but it has not yet been confirmed.
- Stochastic Oscillator: It is hovering near 47, indicating uncertainty in momentum, awaiting confirmation from the price.
Price Action:
- The price is trading below key resistance levels (60.78 and 61.74).
- The current consolidation indicates a possible retest of these levels before a new trend is established.
Crude Oil Price Forecast | Possible Scenarios
Positive Scenario:
If the price manages to break above 60.78, we may witness an upward extension towards 61.74 and possibly 62.40, especially if economic data supports the rise in global energy demand. Negative scenario:
If the price fails to surpass 60.78 and confirms a break of the 58.25 support level, this could return negative pressure towards the 57.06 area and possibly lower.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 60.78 | 58.25 |
| Target Point 1 (TP1) | First resistance: 61.74 | First support: 57.06 |
| Target Point 2 (TP2) | Second resistance: 62.40 | Second support: 56.50 |
| Stop Loss (SL) | 58.25 | 60.78 |
Crude oil is currently showing signs of consolidation after a strong decline, but the trend remains negative as long as the price remains below $61.00. Traders are advised to monitor price action at current resistance to determine optimal entry and exit points.
