USOil (WTI) Preserves Downside Structure Under Soft Momentum Backdrop

Market Analysis – December 26

USOil preserves a downside structure under a soft momentum backdrop. USOil remains positioned within a clearly defined bearish framework, as price continues to trade below a declining short-term moving average near $58.40. Momentum readings point to weak buyer participation, with indicators failing to rotate into supportive territory or validate recent rebound attempts. This combination reflects a market still dominated by sellers, where upside movements lack conviction and follow-through.

USOil Key Levels

Resistance Levels: $61.500, $66.400, $72.200
Support Levels: $55.200, $52.000, $50.100

USOil Long-Term Trend: Bearish

From a technical perspective, price action continues to align with a sequence of lower highs beneath a descending trendline, confirming that the bearish structure remains intact. The $61.45 and $64.00 zones have repeatedly acted as overhead supply, capping recovery attempts and triggering renewed selling pressure. Consolidation around the $58.00 area appears more indicative of a pause within the trend rather than a base-building phase, while repeated interaction with the $55.15 level highlights ongoing distribution pressure along the lower boundary.

Looking ahead, the inability to regain momentum above $61.45 keeps downside risk active toward the $55.15 region, with scope for continuation toward $52.00 if selling pressure intensifies. A decisive break below $55.15 would increase the probability of a broader extension toward the $50.00 area. Unless a sustained rebound materializes, the prevailing outlook remains tilted to the downside, consistent with broader forex signals favoring bearish continuation.

USOil Short-Term Trend: Bearish

On the four-hour chart, USOil remains under pressure as price continues to respect the descending trendline and reject the overhead order block. The failure to sustain trade above the short-term moving average reflects weakening bullish momentum.

A strong bearish candle formation suggests that selling pressure is likely to persist, reinforcing the continuation of the decline. As long as sellers maintain control, further downside movement could expose the $55.15 support zone in the near term.

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