breaks out of its monthly range that had formed since the middle of May.
A 5-month downtrend in oil due to fears of slowed global trade and consecutive increased supply by OPEC+ has started to reverse.
After touching lows of $55, levels not seen since mid-2021 post-COVID recovery, Oil had been forming a consolidation range between $60.5 and $64.
After multiple bounces, and a better global outlook with trade tensions abating (Particularly with US-China talks resuming), the outlook for petroleum prices is starting to look less bearish.
Let’s take a look at the charts to spot potential levels of interest as WTI just touched $65.
US Oil Technical Analysis
WTI Daily Chart
Source: TradingView
US Oil has formed a double-bottom towards the end of May after a particularly strong selling momentum, leading toward a short bounce.
Prices re-integrated the Daily downwards channel, and a 3-week consolidation led to a breakout to the upside that had started on Friday after the positive .
The Daily RSI is building toward overbought, although it’s not there yet.
Let’s take a look at the potential hurdles to higher prices.
WTI 4H Chart
Source: TradingView
US Oil had gapped up on last week’s weekly open on rumours of US-China trade talks resuming, which ended up materializing on Wednesday as Trump and Xi discussed Trade during a 1.5-hour exchange.
Prices are currently stalling at the April 23rd Highs around $65.29, in confluence with the high of the daily descending channel.
4H RSI is looking overbought, therefore prices may consolidate before breaking higher – the upcoming main resistance level to test is $67.
Today’s flows are risk-on however, the mood is not as positive as it was post-NFP release.
WTI 1H Chart
Source: TradingView
US oil has, through last week, formed consecutive bullish impulsive moves, breaking out of the $64 Range highs, and prices are now stalling at the April 2025 highs just above the $65 psychological level.
The 1H MA 50 is acting as support on a potential correction, therefore, it might be useful to keep this one on your charts.
Keep an eye on global sentiment in stocks and other commodities – A rally in these assets may also contribute to a further rise, and vice versa.
More levels to look at:
Support Zones:
- $64 Pivot Zone is currently acting as immediate Support
- 1H MA 50 at 64.10
- $63 Support (+/- $0.30)
- $62 Support
Resistance Zones:
- $65 psychological zone (+/- $0.30) – immediate Resistance
- $65.29 April 2025 Highs
- $66.20 to $66.50 March 2025 Consolidation
Safe Trades!