WTI crude oil price faces key resistance at $62.75 as consolidation continues
WTI crude oil struggles at $62.75 resistance, with support at $60 and $58.30
WTI crude oil has been consolidating near the $61.50 mark, following a recovery from an intraday dip. The price has struggled to break through the $62.75 resistance, marking the top of the previous supply zone that has consistently capped bullish attempts since early May.
Highlights
- WTI crude oil consolidates near $61.50, facing resistance at $62.75.
- Short-term bullish recovery signals seen, but larger trend remains neutral-to-bearish.
- Key support at $60 and $58.30; a break above $63 could trigger further upside.
Despite recent attempts to reclaim higher levels, the broader trend remains neutral-to-bearish, with price constrained within a descending channel, defined by lower highs and lower lows.Broader trend still constrained by resistance levels
On the daily chart, WTI is trading within a larger symmetrical triangle pattern, where the lower boundary has held since May. The $56.14 region continues to act as key structural support, while the upper trendline resistance aligns around $62.80. A breakout from this structure, particularly with a close above $63, could trigger a rally toward the $65 and $67.30 levels. However, failure to hold the $60 region may expose further downside risks toward $58 and $56.
USOIL price dynamics (Source: TradingView)
Momentum indicators on the 30-minute chart have turned constructive, with RSI rebounding to 67.9 from oversold territory, signaling renewed buying pressure. MACD has flipped into bullish territory with increasing histogram bars, confirming short-term positive momentum. However, the Ichimoku Cloud shows price testing the lower boundary of the cloud, reinforcing resistance near $61.75. A sustained push above the cloud is needed to confirm further upside potential.
Volatility compression signals potential breakout
Bollinger Bands on the 4-hour chart are tightening, indicating a volatility squeeze. The price is currently testing the 20 EMA and the median line of the Bollinger Band near $61.45. A successful hold above this level could propel WTI crude oil toward the upper band at $62.75. However, a failure to break through this resistance zone could see the price retreat to support levels near $60.
Overall, while WTI crude oil shows short-term bullish recovery signals, the broader trend remains neutral-to-bearish until a breakout above $63 is achieved. Traders should watch for confirmation in the form of a trendline breakout or breakdown.
As discussed earlier, WTI crude oil continues to face resistance at $62.75, and the broader trend remains constrained by this level. Until a clear breakout above $63 occurs, the price is likely to remain range-bound, with support levels at $60.00 and $58.30.
