WTI crude oil price faces rejection at $63 with bearish outlook ahead
WTI crude oil struggles to break $63 resistance, with key support at $60.42
WTI crude oil has once again approached a critical resistance zone near the $63 level, only to face a sharp rejection and slide back toward the mid-range band. On the 4-hour chart, the price had been coiling within a symmetrical triangle, breaking above the upper trendline during recent session.
Highlights
- WTI crude oil faces rejection at $63, slipping back to $62.50 resistance.
- Short-term momentum indicators suggest further downside risks.
- Support lies at $60.42, with $58 as a deeper demand level.
Broader bearish structure persists despite short-term rallies
On the daily chart, WTI crude oil continues to face broader bearish pressure despite intermittent bullish rallies. The price remains capped under the descending trendline from the March high, and the broader structure is still confined to a lower-high, lower-low formation. The key downside support lies around $60.42, with $58 acting as a deeper demand level. Any push above $64 could open the door toward the $67.47 range high, but for now, rallies are expected to remain corrective, with limited upside potential.
USOIL price dynamics (Source: TradingView)
Momentum indicators on the 30-minute chart show signs of weakening bullish momentum. The RSI has declined from above 60 to near 39, signaling a drop back into bearish territory. MACD has also rolled over, with the signal line crossing above the MACD line and histogram flipping red. This confirms downside momentum is building, aligning with the sharp rejection visible on the lower timeframes. As long as price remains below $62.20, intraday pressure is likely to persist.
Key support and resistance levels to monitor
The Ichimoku Cloud on the 30-minute chart reinforces this sentiment, with price now trading within the cloud base and the conversion line sloping downward. Stochastic RSI is also dipping towards oversold territory, indicating short-term exhaustion. Unless a swift recovery pushes the price back above the $62.80 breakout level, WTI crude may remain vulnerable to retesting the $61.70 and $60.80 support levels.
In conclusion, WTI crude oil faces headwinds following a failed breakout attempt. The technical outlook leans bearish beneath $63, with sellers retaining control unless bulls manage to reclaim and hold above $64. Short-term corrections toward $60.40 remain on the table if downside momentum continues to build.
As discussed in previous analyses, WTI crude oil has been navigating within a range between key resistance near $63 and support at $60.42. Failure to break above $63 could continue to limit upside potential, while failure to hold $60.42 may invite deeper retracement toward $58.00.
