FX.co ★ Geolocation | CL/Crude Oil

Technical Analysis: WTI Oil Breaks Out, Targeting Further Gains Now, lets open the four-hour chart for WTI crude oil to assess the short-term momentum, and the technical picture reveals a significant and decisive shift in market structure. The most critical development on this timeframe is that the price has already broken through the key resistance line, which constituted the upper boundary of the previous descending price channel. This is not a minor or tentative test; it is a conclusive breakout that signals a potential reversal of the prior downtrend. The breakout occurred decisively at the $59.00 level, a price point that has now transformed from a formidable resistance barrier into a new foundational support level. Following this technically significant event, the market momentum shifted unequivocally in favor of the bulls. After the successful breach, oil did not falter but instead continued its ascent with conviction, eventually rallying to reach a high of $62.15. This powerful follow-through buying confirms that the breakout was supported by genuine demand and not merely a short-lived spike. While buyers have not yet been allowed to push the price sustainably above this $62.15 level, resulting in a corrective pullback, this is a normal and healthy market behavior following a strong upward move. Despite this short-term consolidation, the overall technical posture remains bullish. I expect the underlying upward price movement to continue after this period of rest. The failed descent and the powerful prior breakout create a high-probability scenario for another attempt higher. The clear and immediate target for buyers is now a rise to challenge the previous significant local high at $63.00. A break above this level would open the path for a much more extensive rally. Therefore, by synthesizing the data from both the daily and four-hour charts, we receive a confluence of buy signals. The daily chart provides the context of a larger trend reversal, while the four-hour chart offers the precise, actionable entry point following the channel breakout, together creating a compelling case for continued upward momentum in the sessions ahead.

WTI Crude Oil Weekly Forecast: Bearish Momentum Points to Deeper Correction I will begin my oil trading forecast with a strategic overview from the longest and most significant timeframe—the weekly chart. This perspective is crucial for understanding the dominant trend and identifying the primary forces driving the market. The weekly chart reveals a clear and established bearish structure: a downward price channel has previously formed, effectively capturing the commodity's trajectory of lower highs and lower lows. Currently, the black gold is trading firmly within this southern channel at the $61.44 level, which is precisely where Friday's trading session concluded. Your observation regarding the weekly candlestick is accurate but requires nuanced interpretation. While a long red candlestick typically signifies strong selling pressure and a bearish outlook, it seems there may have been a slight confusion in the description. A "long red weekly candlestick" intrinsically suggests dominance by sellers throughout the week, indicating that the closing price was significantly lower than the opening price. This is a classic sign of distribution and reinforces the strength of the downtrend, rather than suggesting continued growth. This bearish signal from the weekly candle aligns perfectly with the broader technical structure. We are indeed seeing a new downward wave forming within the confines of the pre-existing channel. This indicates that the selling pressure observed in the previous week was not an isolated event but part of a sustained bearish phase. The momentum within this structure is currently pointing south, and a break below recent minor supports would confirm the wave's development. Given this configuration, the primary target for the bears will be a further downward movement within the southern channel. The logical endpoint for this decline is a test of the channel's foundational support line. Based on the channel's projected trajectory on the weekly chart, this key support level is anticipated to be crossed at approximately the major psychological and technical benchmark of $50.00. A test of this level would represent a significant correction and would be consistent with the scale of the price movement dictated by the large-scale descending channel that is currently governing the market's direction.