U.S. crude oil prices just jumped back to $60 before seeing pullbacks!
Are we seeing the beginning of a longer-term uptrend?
Or was today’s upswing a fluke?
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Earlier today, Ukraine’s drone strikes on Novorossiysk, Russia’s second-largest oil export hub, stirred up fresh supply concerns and helped push USOIL above the $60.00 psychological level.
The jump pulled back some of USOIL’s downswing after OPEC’s latest report suggested that supply might match the demand in 2026 instead of slipping into a deficit. That outlook took a lot of steam out of the bulls.
With only a few top-tier reports lined up in the next trading sessions, the Black Crack could keep taking its cues from today’s catalyst.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USOIL, which has been trending lower since late October, bounced from the $58.00 S1 Pivot Point zone and is now trading closer to the $60.00 area.
Keep in mind that the $60.50 region lines up with the top of the descending channel pattern. If price turns lower from that level, it would signal that the downtrend is still valid. In that case, USOIL could slide back to its $58.00 lows or even make new monthly lows.
But if traders keep it above $60.50, USOIL opens the door for a move toward the $61.28 R1 Pivot Point level. With enough momentum, we could also see a test of the $62.00 psychological level, which sits near the major area of interest from August and September.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
