Since touching the key support level at $67, WTI crude oil has posted a notable recovery of more than 7% in recent weeks, and is now hovering slightly above the $70 per barrel mark. For now, the bullish bias remains intact as comments from the White House suggest potential tariffs ranging from 25% to 50% on countries that choose to trade Russian oil. According to President Trump, Russia has failed to implement a ceasefire in the short term and this could lead to additional tarrifs. Although this new tariff strategy has no official date, if enacted, it could significantly disrupt global oil supply, reinforcing short-term bullish expectations for crude.
Wide Sideways Range:
For several months now, oil has been moving within a stable sideways range between $81 (resistance) and $67 (support) per barrel. So far, there hasn't been any significant breakout from this channel, making it the dominant structure on the chart in the short term.
MACD:
The MACD histogram continues to oscillate just above the zero line, but recent sessions have shown slight bearish momentum, possibly signaling a pause in the upward movement as the dominance of the moving averages appears to be neutralizing.
TRIX:
A similar situation is developing in the TRIX indicator, with the line hovering just below the neutral 0 level. This suggests that the strength of the 18-period moving average has entered a zone of balance, lacking a clear directional force.
The behavior of both indicators implies that momentum is gradually weakening as the price approaches resistance levels.
Key Levels:
By Julian Pineda, CFA – Market Analyst
Wide Sideways Range:
For several months now, oil has been moving within a stable sideways range between $81 (resistance) and $67 (support) per barrel. So far, there hasn't been any significant breakout from this channel, making it the dominant structure on the chart in the short term.
MACD:
The MACD histogram continues to oscillate just above the zero line, but recent sessions have shown slight bearish momentum, possibly signaling a pause in the upward movement as the dominance of the moving averages appears to be neutralizing.
TRIX:
A similar situation is developing in the TRIX indicator, with the line hovering just below the neutral 0 level. This suggests that the strength of the 18-period moving average has entered a zone of balance, lacking a clear directional force.
The behavior of both indicators implies that momentum is gradually weakening as the price approaches resistance levels.
Key Levels:
- $73: A key resistance level located near the midpoint of the sideways range, also aligning with the 200-period moving average. A breakout above this level could trigger a solid short-term bullish trend.
- $81: A distant resistance level marking the top of the current range. Price action reaching this level could be decisive in confirming a long-term bullish breakout.
- $67: A significant support level, marking the lower boundary of the range. A return to this level could revive previously dormant bearish pressure and potentially resume a longer-term downtrend that began several weeks ago.
By Julian Pineda, CFA – Market Analyst
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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.