WTI Oil Holds $63.35 as Inventories Jump—Breakout or Pullback Ahead?
WTI is stuck at $63.35 between geopolitical risks and oversupply concerns. US crude inventories rose 3.9 million barrels...
Quick overview
- WTI crude oil is currently trading at $63.35, influenced by geopolitical risks and oversupply concerns.
- US crude inventories increased by 3.9 million barrels, indicating weaker seasonal demand than expected.
- Technical analysis shows strong resistance at $63.85, with potential price movements depending on whether it breaks above or falls below key levels.
- Traders are advised to wait for confirmation of a breakout or rejection before making any trades.
WTI is stuck at $63.35 between geopolitical risks and oversupply concerns. US crude inventories rose 3.9 million barrels, way above forecasts, showing weaker seasonal demand. Meanwhile, tensions in key energy regions are adding a supply risk premium, so traders are cautious. The market can’t make up its mind as these forces collide.
Technical Setup: Resistance Holds Strong
On the 4-hour chart, the descending trendline at $63.85 is still capping rallies, with the 50-EMA at $63.61 and 200-EMA at $64.83 acting as resistance. Price has repeatedly formed rejection wicks at this area, so sellers are in control. RSI is 51, neutral. A close above the trendline could open up $64.98–$65.97, while failure could see a pullback to $62.57–$61.45.
Trade Setup: Wait for the Break or Rejection
For traders, it’s all about confirmation:
- Long Setup: Enter only if WTI closes above $63.85 with volume. Target $64.98–$65.97, stop below $62.57.
- Short Setup: If price fails at the trendline and goes under $62.57, target $61.45.
Be patient – wait for the breakout or rejection before entering. Momentum will tell us what’s next.
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