Crude Oil (USOIL) Price Drops 7% to $65.50 After Ceasefire Deal—3 Bearish Signals Traders Watch

WTI crude fell below $66.20 on Tuesday, its lowest in nearly two weeks, after US President Donald Trump announced a ceasefire between...

Written by: Arslan Butt • Tuesday, June 24, 2025 • 1 min read

• Last updated: Tuesday, June 24, 2025

Quick overview

WTI crude oil prices fell below $66.20 after a ceasefire was announced between Israel and Iran, marking the lowest price in nearly two weeks.
The ceasefire followed Iran's missile strikes on a US base in Qatar, which shifted market sentiment and reduced fears of disruptions in oil shipments through the Strait of Hormuz.
Technically, WTI crude has broken lower from a rising wedge pattern, indicating a bearish momentum shift with key resistance at the 50-period EMA of $71.78.
Traders should be cautious as further declines could occur unless bullish signals emerge, with key support levels identified at $64.40 and $62.87.

WTI crude fell below $66.20 on Tuesday, its lowest in nearly two weeks, after US President Donald Trump announced a ceasefire between Israel and Iran. The truce, which started with Iran halting strikes and Israel complying, will end the 12-day conflict in 24 hours.

Timing was everything. Just hours before the ceasefire, Iran launched missiles at a US base in Qatar after airstrikes on its nuclear facilities. Although no one was hurt due to successful US interceptions, the narrative shifted fast.

Iran blocking the Strait of Hormuz, a critical channel for 20% of global oil shipments, is no longer a threat. That’s pulled the floor out from under oil prices.

USOIL Bearish Pattern Confirms Momentum Shift

From a technical perspective, WTI crude (USOIL) has broken lower. The chart shows a breakdown from a rising wedge, a bearish reversal pattern, and a steep fall from $73.70 to just above $65.50.

More importantly, a Three Black Crows pattern has formed on the 2-hour chart. Three large bearish candles means aggressive selling. The 50-period EMA ($71.78) is now resistance. The MACD is bearish with a deep negative crossover and expanding red bars, momentum is clearly down.

Crude Oil Price Chart - Source: Tradingview — Crude Oil Price Chart – Source: Tradingview

EMA Trend: 50-EMA flipped bearish
MACD: Crossover + deep red histogram
Key Support Levels: $64.40, $62.87, and $61.27
Pattern Watch: Three Black Crows + wedge breakdown

Crude Oil Trade Outlook: More Pain or a Pause?

Unless bulls can get back in quickly with a bullish engulfing or hammer, oil’s decline may not be over. A rejection at $67.25 could mean more down to $64.40 and $62.87. A conservative short entry here with a stop above $69.25 is a good risk-reward. But traders be aware, technicals matter but headlines move this market.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.