US oil rallies but shows indecision within established range

[Redator]

Oil prices have had volatile swing in the past week, finding strong demand towards the end of July after bouncing at the lows of its $65 to $70 range, even breaking its highs (71.38) before getting hammered from downbeat sentiment post-NFP miss.

The commodity is in the Middle of some fundamental headwinds between strong supply (OPEC+ cartel trying to change things up) and Russian oil micmacs.

US President Trump is applying strong pressure on countries importing Russian oil to push for a truce in the Eastern European conflicts. India serves as a target for higher tariff menaces as long as they keep buying Russian oil.

The action in Oil is still rangebound and despite this morning's rally, the technicals for the black gold are not so hopeful.

Let's jump right into a multi-timeframe technical analysis for the commodity.

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US Oil Multi-timeframe Analysis

US Oil Daily Chart

US Oil Daily Chart, August 6, 2025 – Source: TradingView

The range established after the Israel-Iran war has held strong between $65 lows and $70 highs, with prices trying to breakout of multiple occasions.

But as typical for any range, one may assume it holds until proven the contrary.

As mentioned in the introduction, the failed break higher is now met with bearish technical and fundamental catalysts, currently down 6.85% from its past week highs.

Daily RSI has stopped moving towards bearish territory but such indicators tend to not show much amid rangebound action.

Levels to keep on your charts:

Resistance Levels

• Imminent Pivot Zone $67.30 to $68 – Confluence with 50 and 200 Day MAs
• 69.5–$70.5 Resistance Zone, range extremes
• 71.38 End-July highs

Support Levels

• $65 to $66 Support Zone
• $64 May Range highs support
• 60.5 Low of May Range

US Oil 4H Chart

US Oil 4H Chart, August 6, 2025 – Source: TradingView

The Monday weekly open got met with a gap higher from the Trump menaces towards Russian oil buyers which followed by consequent selling.

This morning's session did see some decent buying flows but sellers have stepped in at the pivot zone, marking session highs of 67.25.

Since, the price for the commodity has retracted by about $1 forming a 4H long-tailed indecision Doji candle.

A failure to retest the highs of the range may point to more bearish action looking forward, but tracking how countries react to the Trump menaces may provide a fundamental boost (If not buying Russian Oil, supply gets squeezed and may point to higher prices).

US Oil 1H Chart

US Oil 1H Chart, August 6, 2025 – Source: TradingView

Despite evolving in a downwards hourly channel, the ongoing price action is very mixed, even looking at shorter timeframes.

In these conditions, one of the best ways to get clarity is to look at the ranges of the 4H doji candle for immediate bull/bear strength analysis – Look at reactions above $67.20 or below $65.92.

Safe Trades!

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