USOil (WTI) Extends Downside Trajectory Amid Eroding Buyer Conviction

Market Analysis – October 31

USOil extends its downside trajectory amid eroding buyer conviction. The commodity maintains its prevailing bearish outlook, showing a gradual decline in momentum across both short- and medium-term structures. The 9-day Simple Moving Average (SMA), fluctuating around $60.280, currently acts as a dynamic resistance level, suppressing any meaningful upward retracement. Meanwhile, the stochastic oscillator is descending from the overbought zone, signaling weakening buying interest and reinforcing the prevailing bearish sentiment that continues to shape the broader energy market.

USOil Key Levels

Resistance Levels: $61.50, $66.40, $72.20
Support Levels: $55.20, $52.00, $50.10

USOil Long-Term Trend: Bearish

From a technical standpoint, the asset recently faced rejection around the order block (OB) region near $61.450, confirming renewed selling activity at that resistance level. The emergence of a consistent lower-high formation, alongside a prior Market Structure Shift (MSS), underscores sustained bearish control. Multiple failed attempts to break above the $64.030 level further emphasize the persistent influence of sellers and the market’s limited capacity for meaningful upward recovery.

Looking ahead, the bearish bias is expected to persist, with price action potentially extending toward the $55.150 support area. A decisive break below this point could expose deeper liquidity zones around $52.030 and $50.060 if downward momentum continues. However, a brief retracement toward the $61.000–$61.450 region remains possible before sellers regain full control, maintaining the overall bearish framework and providing critical insights for traders monitoring forex signals.

USOil Short-Term Trend: Bearish

USOil continues to face strong bearish pressure, with price movement remaining below the 9-day SMA near $60.230, highlighting persistent weakness in buyer momentum. The recent rejection from the $61.450–$62.000 order block validates active selling interest and reinforces the ongoing downward bias.

The Stochastic Oscillator shows a modest recovery from the oversold region but lacks strong momentum, suggesting limited potential for a significant rebound. A further decline toward the $55.150 support zone appears likely if sellers maintain their dominance in the near term.

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