WTI crude oil price struggles near $60 as bears tighten their grip
WTI crude oil price consolidates near $60 as bears maintain control ahead of key support tests
WTI crude oil price is trading near $60.60 today, continuing to face downward pressure after a sharp rejection from the $63 resistance earlier this week. Following the failure to clear this critical level, price action has turned aggressively lower, breaking through multiple support levels on both the 30-minute and 4-hour charts.
Highlights
- WTI crude struggles near $60.60, with bears in control after rejection from $63 resistance.
- Momentum indicators remain bearish, signaling limited upside potential unless buyers step in.
- Immediate support at $60.20 holds, but a breakdown could lead to further declines toward $58.90.
The market is now firmly in a bearish phase, with a clean breakdown below the rising wedge support near $61.50 driving the price lower. The $60 level has become a key psychological support, and although buyers have attempted to defend this zone, there is little evidence of strong accumulation or a reversal setup. Momentum indicators like the RSI and MACD continue to favor sellers, while Bollinger Bands indicate elevated volatility, suggesting a potential continuation of the downtrend unless a strong reversal occurs.
USOIL price dynamics (April 2025 - May 2025) Source: TradingView.
Technical setup shows bearish bias as support tests continue
The 30-minute RSI sits at 39, while the 4-hour RSI hovers just above 40, both reflecting weak bullish participation without reaching true oversold extremes. Meanwhile, the MACD remains negative on the 4-hour chart, with the signal line pointing downward and histogram bars showing no signs of reversal momentum. This bearish setup leaves little room for a sustained recovery unless buyers step in decisively near $60.20.
Support levels to watch include $60.20, which has held so far, but any clean break below this level could open the door for a move toward $58.90. Further declines could test even lower support near $57.80, where a potential floor lies. On the upside, bulls would need to reclaim the $61.80 level to challenge the bearish structure and target the $63 zone again.
Short-term outlook for May 22–23
Heading into May 22–23, WTI crude oil faces significant downside risks if it fails to hold $60.00. A sustained break below this level could see further declines toward $58.90 or even $57.80. However, any recovery attempts would need to clear the $61.80 level and gain momentum above the EMA cluster between $61.70 and $62.20. Until then, the technical backdrop remains firmly bearish.
As previously discussed, the broader sentiment for WTI crude oil remains tilted in favor of sellers. After the sharp rejection from $63, the market has struggled to gain traction, and any recovery attempts have failed to break key resistance levels. The focus now remains on whether the $60 support can hold, as a break below it could lead to a deeper correction.
