US Oil breaks out of its monthly range that had formed since the middle of May.
A 5-month downtrend in Oil due to fears of slowed global trade and consecutive increased supply by OPEC+ has started to reverse.
After touching lows of $55, levels not seen since mid-2021 post-covid recovery, Oil had been forming a consolidation range between $60.5 and $64.
After multiple bounces, and a better global outlook with trade tensions abating (Particularly with US-China talks resuming), the outlook for petroleum prices is starting to look less bearish.
Let's take a look at the charts to spot potential levels of interest as WTI just touched $65.
US Oil Technical Analysis
WTI Daily Chart
US Oil Daily Chart, June 9, 2025 - Source: TradingView
US Oil Daily Chart, June 9, 2025 - Source: TradingView
US Oil has formed a double-bottom towards the end of May after a particularly strong selling momentum, leading toward a bounce to today's levels.
Prices re-integrated the Daily downwards channel and a 3-week consolidation led to a breakout to the upside that had started on Friday after the positive Non-Farm Payroll report.
The Daily RSI is building toward overbought although it's not there yet.
Let's take a look at the potential hurdles for higher prices.
WTI 4H Chart
US Oil 4H Chart, June 9, 2025 - Source: TradingView
US Oil 4H Chart, June 9, 2025 - Source: TradingView
US Oil had gapped up on last week's weekly open on rumours of US-China trade talks resuming - which ended up materializing on Wednesday as Trump and Xi discussed on Trade during an 1.5 hour exchange.
Prices are currently stalling at the April 23rd Highs around $65.29, in confluence with the high of the daily descending channel.
4H RSI is looking overbought, therefore prices may consolidate before breaking higher - the upcoming main resistance level to test is $67.
Today's flows are risk-on however the mood is not as positive as it was post-NFP release.
WTI 1H Chart
US Oil 1H Chart, June 9, 2025 - Source: TradingView
US Oil 1H Chart, June 9, 2025 - Source: TradingView
US Oil has through last week formed consecutive bullish impulsive moves, breaking out of the $64 Range highs and prices are now stalling at the April 2025 highs just above the $65 psychological level.
The 1H MA 50 is acting as support on a potential correction therefore it might be useful to keep this one on your charts.
Keep an eye on global sentiment in stocks and other commodities - A rally in these assets may also contribute to a further rise, and vice-versa.
More levels to look at:
Support Zones:
$64 Pivot Zone currently acting as immediate Support
1H MA 50 at 64.10
$63 Support (+/- $0.30)
$62 Support
Resistance Zones:
$65 psychological zone (+/- $0.30) - immediate Resistance
You can post now and register later.
If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.
US Oil breaks out of its monthly range that had formed since the middle of May.
A 5-month downtrend in Oil due to fears of slowed global trade and consecutive increased supply by OPEC+ has started to reverse.
After touching lows of $55, levels not seen since mid-2021 post-covid recovery, Oil had been forming a consolidation range between $60.5 and $64.
After multiple bounces, and a better global outlook with trade tensions abating (Particularly with US-China talks resuming), the outlook for petroleum prices is starting to look less bearish.
Let's take a look at the charts to spot potential levels of interest as WTI just touched $65.
US Oil Technical Analysis
WTI Daily Chart
US Oil Daily Chart, June 9, 2025 - Source: TradingView
US Oil has formed a double-bottom towards the end of May after a particularly strong selling momentum, leading toward a bounce to today's levels.
Prices re-integrated the Daily downwards channel and a 3-week consolidation led to a breakout to the upside that had started on Friday after the positive Non-Farm Payroll report.
The Daily RSI is building toward overbought although it's not there yet.
Let's take a look at the potential hurdles for higher prices.
WTI 4H Chart
US Oil 4H Chart, June 9, 2025 - Source: TradingView
US Oil had gapped up on last week's weekly open on rumours of US-China trade talks resuming - which ended up materializing on Wednesday as Trump and Xi discussed on Trade during an 1.5 hour exchange.
Prices are currently stalling at the April 23rd Highs around $65.29, in confluence with the high of the daily descending channel.
4H RSI is looking overbought, therefore prices may consolidate before breaking higher - the upcoming main resistance level to test is $67.
Today's flows are risk-on however the mood is not as positive as it was post-NFP release.
WTI 1H Chart
US Oil 1H Chart, June 9, 2025 - Source: TradingView
US Oil has through last week formed consecutive bullish impulsive moves, breaking out of the $64 Range highs and prices are now stalling at the April 2025 highs just above the $65 psychological level.
The 1H MA 50 is acting as support on a potential correction therefore it might be useful to keep this one on your charts.
Keep an eye on global sentiment in stocks and other commodities - A rally in these assets may also contribute to a further rise, and vice-versa.
More levels to look at:
Support Zones:
Resistance Zones:
Safe Trades!
Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.