WTI crude oil has found plenty of willing buyers beneath $65 per barrel recently, often acting as a launchpad for abrupt squeezes higher. But with supply gushing as OPEC+ returns 2.2 million barrels per day to market at a time when concerns about the U.S. economy are growing, whether that continues remains debatable—especially after the sharp $5-plus slide over the past week.
With the price closing at its lowest level since early June on Tuesday, traders should be alert to the risk of an extension of the bearish move.
Given how often the price has been bid up beneath $65, the inclination is not to act immediately if Tuesday’s lows are taken out. Instead, $63.70 is a level to watch, having acted as resistance through May and June. A break below there would create a cleaner setup for shorts, allowing positions to be initiated with a stop just above for protection. $62.00 saw some action earlier in the year, but $60 looks the more compelling downside target.
RSI (14) is beneath 50 while MACD is negative, having already crossed below the signal line—both hinting that selling rallies may work better than buying dips near term.
Of course, if the contract can’t break $65 meaningfully despite the bearish backdrop, the setup could be flipped, allowing for longs to be established above with a stop beneath, targeting either the 200-day moving average or $68.44 resistance.
Good luck!
DS
With the price closing at its lowest level since early June on Tuesday, traders should be alert to the risk of an extension of the bearish move.
Given how often the price has been bid up beneath $65, the inclination is not to act immediately if Tuesday’s lows are taken out. Instead, $63.70 is a level to watch, having acted as resistance through May and June. A break below there would create a cleaner setup for shorts, allowing positions to be initiated with a stop just above for protection. $62.00 saw some action earlier in the year, but $60 looks the more compelling downside target.
RSI (14) is beneath 50 while MACD is negative, having already crossed below the signal line—both hinting that selling rallies may work better than buying dips near term.
Of course, if the contract can’t break $65 meaningfully despite the bearish backdrop, the setup could be flipped, allowing for longs to be established above with a stop beneath, targeting either the 200-day moving average or $68.44 resistance.
Good luck!
DS
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.