WTI crude oil has posted a drop of more than 4% in recent sessions as the market digests new announcements from OPEC+. The organization stated that current economic conditions could support growth in oil demand throughout 2025 and 2026. However, it remains firm in its decision to increase production starting in May and June, with monthly increments of 411,000 barrels per day, and has also announced another increase in July.
This stance has sparked concerns in the market about a potential short-term oversupply. If this strategy persists, selling pressure could return to WTI price action in the coming sessions.
Bearish Trend
Since January 20, a clear bearish trend has been forming, pushing the barrel’s price below the $60 mark. While a notable upward move is currently underway, it remains insufficient to break the prevailing bearish formation, which continues to be the dominant technical structure in the short term.
ADX
The ADX line was previously hovering around the 40 level, reflecting high volatility in price movements. However, it has begun to flatten, and if this continues, it could suggest a loss of directional strength, paving the way for a more neutral price behavior.
RSI
The behavior of the RSI mirrors that of the ADX. It is currently oscillating around the 50 level, indicating a balance between buying and selling pressure, and reinforcing the potential for a neutral phase in the short term.
Key Levels:
Written by Julian Pineda, CFA – Market Analyst
This stance has sparked concerns in the market about a potential short-term oversupply. If this strategy persists, selling pressure could return to WTI price action in the coming sessions.
Bearish Trend
Since January 20, a clear bearish trend has been forming, pushing the barrel’s price below the $60 mark. While a notable upward move is currently underway, it remains insufficient to break the prevailing bearish formation, which continues to be the dominant technical structure in the short term.
ADX
The ADX line was previously hovering around the 40 level, reflecting high volatility in price movements. However, it has begun to flatten, and if this continues, it could suggest a loss of directional strength, paving the way for a more neutral price behavior.
RSI
The behavior of the RSI mirrors that of the ADX. It is currently oscillating around the 50 level, indicating a balance between buying and selling pressure, and reinforcing the potential for a neutral phase in the short term.
Key Levels:
- $65 – Current Resistance: Aligns with the 38.2% Fibonacci retracement and acts as a key psychological level. A breakout above this level could extend the current bullish bias over the coming sessions.
- $67 – Distant Resistance: Matches the 50% Fibonacci retracement and a sideways zone observed in March. Sustained moves above this area could challenge the existing bearish structure on the chart.
- $60 – Crucial Support: Represents a consistent area of indecision in recent months. If the price returns to this level, the previous bearish structure could regain strength in the short term.
Written by Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.