U.S. crude oil prices are a hair’s breadth away from a major support zone!
Think we’ll see a bounce in the next trading sessions?
Or is the Black Crack headed for fresh 2025 lows?
WTI Crude Oil (USOIL) Daily Chart by TradingView
In case you missed it, U.S. dollar demand is taking a hit as U.S. shutdown concerns get mixed with U.S.-China trade jitters and increasing expectations of an October AND December Fed rate cuts.
Even so, crude oil still can’t catch a break. Traders are worried the trade war could slow global growth and crush demand. What’s more, the U.S. and Russia seem to be on the same page ahead of President Trump’s meeting with Ukraine’s Zelenskyy, which could further ease supply risks and keep oil prices under pressure.
And then there’s the latest Energy Information Administration (EIA) report, which showed crude inventories unexpectedly increased, and U.S. crude production rose to a record high in the week ending October 10.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
WTI crude oil (USOIL) has been in a steady downtrend since it hit resistance around $66.00 in late September. It recently slipped below the key $60.00 mark and now trades near $56.80.
We’re watching the $56.00 level closely since it acted as support back in April and again in May.
Bullish candlesticks and sustained momentum above that line could set USOIL up for a rebound toward the $60.00 psychological level, maybe even $62.50 if the bounce gains traction.
But if prices break clearly below $56.00, that would mark new 2025 lows and open the door for a slide toward previous inflection points around $53.50 or even $51.50, levels last seen in 2021.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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