WTI Crude Oil Could Hit $64.15: Watch These Key Levels for a Potential Breakout

WTI crude oil futures rose to $63.1 per barrel on Tuesday, the second day of gains as tensions escalate. After a lackluster round of talks between Russia and Ukraine on Monday, the conflict remains unresolved. Drone strikes by Ukraine and Russian retaliation over the weekend added volatility to the oil market.

OPEC+ kept their July output increase unchanged, same as the past two months. This relieved oversupply concerns but kept prices firm as traders weighed the uncertain demand backdrop. The US dollar’s drop due to renewed trade tensions and tariff threats from the Trump administration added to the bullish narrative for dollar-denominated commodities like crude oil.

Technical Analysis Signals Tightening Price Action

WTI crude is consolidating at $62.80 just below $63.54 resistance. The price action forms a narrowing wedge below a descending trendline, which could be a breakout. The 50-period EMA at $62.03 is acting as support and is part of an ascending triangle. This pattern often means buyers are getting ready to push prices higher.

The MACD histogram is losing bearish momentum and the signal lines are about to cross bullish, a classic buy signal. Watch:

• Resistance: $63.54

• Support: $62.03, $61.93, $61.02

• Breakout trigger: Close above $63.54 and target $64.15 and $64.82

Actionable Trading Setup for Newbies

For newbies, the trade is simple: a close above $63.54 is a buy signal, with $64.15 as the first target and stop-loss below $62.03. Look for bullish candlestick patterns like a bullish engulfing or three white soldiers near support for more conviction.

But be cautious of reversal signals like a shooting star or bearish engulfing candle near $63.54 which could mean a pullback to $61.93.Get ready for a move. Stay patient and watch the levels.