WTI crude oil price holds near $72 as momentum fades below resistance
WTI crude oil stalls below resistance near $74.50 as short-term indicators signal weakening momentum
WTI crude oil prices closed at $72.34 on Tuesday, retreating from an earlier test of the $74.50–$75 resistance zone. This rejection at the upper Bollinger Band and Supertrend reversal level marks a notable pause in upside momentum, raising the likelihood of a near-term pullback or continued consolidation.
Highlights
- WTI crude oil closed at $72.34 after rejecting the $74.50 resistance zone.
- Momentum indicators on 30-minute and 4-hour charts hint at early bearish pressure.
- Key support lies near $70; breakdown risks deeper fall toward $68–$66.50.
The rejection comes amid thinning volume and early technical signs that suggest a shift in short-term sentiment.
Volatility compresses as oil retests key demand band
On the 4-hour timeframe, WTI remains above the 20/50/100 EMA cluster, with those levels aligning between $69 and $71.30. The price also continues to trade within the upper half of the Keltner Channel, suggesting that overall bullish structure is intact despite waning momentum. However, the VWAP rejection near $73 and a red Supertrend indicator signal rising caution for long positions.
USOIL price forecast (Source: TradingView)
Shorter timeframes tell a more fragile story. The 30-minute chart reveals a minor breakdown below $73.20, with RSI slipping toward 40 and MACD crossing bearishly. The Parabolic SAR has also flipped above price, reinforcing short-term weakness. These developments follow a wedge breakdown, indicating compression may now resolve to the downside.
Broader trend intact but near-term risk rises
The daily chart still favors a constructive mid-term view. WTI has broken above a descending trendline from 2024 and reclaimed the $71 pivot. As long as price holds above $70, this zone may serve as a reaccumulation base. The longer-term bullish trendline from the May low near $64 also remains unbroken.
Still, traders should monitor whether the $70–$71 region holds. A breakdown below $70.00 could expose the $68–$66.50 support band, while a bullish push back above $74.50 may revive upside toward $76.80. With volatility compressing and trend signals softening, the next move could set the tone for late June.
In earlier coverage, WTI crude oil was noted to be regaining bullish footing above $70. The recent rejection below $75 now raises caution, and until buyers reclaim this threshold, risk remains for further retracement toward lower EMA support zones.
