Oil Breaks Out of Range — Key Levels to Watch Next

[Redator]

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:

• $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
• $65.29 April 2025 Highs
• $66.20 to $66.50 March 2025 Consolidation

Safe Trades!

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