After a series of gains that pushed oil prices towards $63.00 and $64.00 per barrel, West Texas Intermediate crude oil has begun to show signs of slowing down, with recent candles on the four-hour chart showing potential reversal signals. The slight decline in momentum, coupled with the arrival of crucial technical resistance, prompts the market to question: Has a correction truly begun? Or is this a temporary pause in the uptrend?
Market Overview
- Current Price: $62.30
- Short-Term Trend: Upward – with Correction Signals Emerging
- Nearby Resistances: 63.08 – 64.12
- Pivotal Supports: 61.02 – 60.24
Momentum Slowing After Testing the 64 Level
Successful Breakouts of Moving Averages, but Facing Technical Resistance
Possible Technical Correction Before Continuing the Rise
WTI Crude Oil Technical Analysis
General Trend:
Oil is currently in a corrective ascending channel within a general downtrend that began in early April. However, after reaching the 64.12 level, signs of weakness have appeared in recent candles, suggesting a possible pullback or retest of the broken levels.
Technical Indicators:
- MACD: Positive, but showing convergence between the two lines, which could lead to a negative crossover soon.
- Stochastic Oscillator: Starting to decline from overbought levels (>70), supporting a short-term technical pullback scenario.
- Moving Averages: The price remains above the moving averages (50 and 200), but momentum has begun to slow above 63.00.
Technical Outlook for Today
Closest Scenario:
If the decline continues below 63.00, we are likely to see a decline towards 61.02 – 60.24, which are strong support areas that could create new buying opportunities.
Alternative Scenario:
If the price is able to return above 63.10 and hold above it, the path will be open for a retest of 64.12 and possibly targeting the 65.00 levels later.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 63.08 | 61.02 |
| Target Point 1 (TP1) | First resistance: 64.12 | First support: 60.24 |
| Target Point 2 (TP2) | Second resistance: 64.60 | Second support: 59.80 |
| Stop Loss (SL) | 61.02 | 63.08 |
Crude oil is facing a pivotal stage after a successful corrective rally. Indicators are trending lower in the short term, which could provide an entry opportunity at lower levels if support at 61.00 holds.
