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USOil (WTI) Crashes Below Key Support As Bears Take Control

Azeez Mustapha
Updated 2 min read
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USOil (WTI) Crashes Below Key Support As Bears Take Control

Market Analysis – April 4

USOil has crashed below a key support level as bearish momentum dominates the market. Technical indicators are signaling a strong downtrend for USOil. The 9-day Simple Moving Average (SMA), currently at $68.90, has been decisively broken, with price action trending well below it—confirming continued downside pressure. The MACD (Moving Average Convergence Divergence) shows a bearish crossover, with both the MACD and signal lines positioned below zero. The histogram bars continue to expand in the negative zone, further indicating intensified selling pressure. This confirms a shift in sentiment from a bullish retracement to sustained aggressive selling, with implications for traders.

USOil Key Levels

Resistance Levels: $72.00, $77.30, $80.70
Support Levels: $67.10, $65.30, $61.70

USOil Long-Term Trend: Bearish

From a price action perspective, USOil encountered resistance at the $72.00 order block zone, which triggered a sharp decline marked by a strong bearish engulfing candle. This occurred shortly after a Break of Structure (BOS) near $65.30, which failed to hold as support upon retesting. The pronounced downward movement has now broken through the next critical support zones around $67.10 and $65.30, confirming that sellers are firmly in control. The aggressive selling wave has resulted in a long red candlestick that breached multiple support levels without resistance.
USOil (WTI) Crashes Below Key Support As Bears Take Control Looking ahead, USOil appears set to retest the key demand zone near $61.70, with the possibility of further downside still on the table. Any upward correction toward $67.10 is likely to encounter resistance from the broken support and the 9-SMA. Unless a bullish reversal pattern or a higher low develops, the bearish trend is expected to persist. A firm close above $67.10 would be required to suggest a potential short-term trend reversal in favor of the bulls.

USOil Short-Term Trend: Bearish

USOil remains firmly in a downward trend after breaking significant support at $65.30. The price continues to trade beneath the 9-SMA, reinforcing the current bearish momentum, while MACD histogram bars remain deep in negative territory.

USOil (WTI) Crashes Below Key Support As Bears Take Control

Traders watching forex signals may find short-term opportunities during a potential retracement to the $65.25–$67.00 order block, before the market possibly resumes its decline. If resistance holds in this zone, prices are likely to extend the drop toward $60.00.

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