WTI crude oil price holds above $74 as breakout eyes June extension
WTI crude oil tests upper resistance near $74 after breakout from multi-month channel
WTI crude oil continued its June surge on Thursday, with price consolidating above $74 following a breakout from a multi-month descending channel. The rally, which began in early June from below $64, has redefined the technical landscape for oil markets.
Key highlights
- WTI crude oil extends rally from sub-$64 to $74 as technical breakout gains momentum
- Bullish structure confirmed above $70.50–$72.00 with next resistance at $76.20
- Indicators support continued upside, though short-term exhaustion risk emerges below $75.15
Buyers are now attempting to push beyond the $75 level, where historical resistance converges with key indicator signals.
Breakout structure lifts above major zones
The daily chart confirms a clean breakout from a downward-sloping channel that had capped oil below $68 since April. The $70.50–$72.00 area, which previously acted as a ceiling, has now flipped into a support zone. This level also aligns with the upper boundary of a Q2 accumulation range, reinforcing its strength. Current price action near the $74.60 mark is testing the underside of the March swing high, with resistance visible at $76.20 and $78.80.
WTI crude oil price dynamics (Source: TradingView)
The 4-hour chart shows continued bullish behavior, with the 20/50/100 EMA cluster providing dynamic support between $67.38 and $72.38. Bollinger Bands remain wide, and price is hugging the upper band, while the BB %B indicator near 1 signals trend continuation. The Awesome Oscillator and MACD remain in bullish territory, though short-term divergence and the flattening of ADX readings hint at potential pause or consolidation.
Momentum remains bullish but risks cooling
Despite the positive trend, the Directional Movement Index on the 30-minute chart shows a slight weakening in +DI and ADX, suggesting that immediate momentum may be cooling. The Chaikin Money Flow has turned slightly negative at -0.08, indicating a dip in buying volume. The Average Daily Range has expanded to 1.24, signaling heightened volatility, which could aid in a decisive breakout or create a sharp reversal if resistance at $75.15–$76.20 holds.
In our earlier June coverage, we noted the developing bullish structure above $70 and identified the $76.20 level as a likely inflection point. With WTI now consolidating just below this mark, the coming sessions could determine whether bulls retain control or face renewed supply pressure.
