USOil (WTI) Rejects Supply Zone With Bearish Pressure Building

Market Analysis – June 20

USOil has rejected a key supply zone with bearish pressure beginning to intensify. After surging into the major supply area between $76 and $80, momentum indicators—particularly the Stochastic Oscillator—are signaling exhaustion, remaining firmly in overbought territory. Price action is currently stalling just above the 9-day Simple Moving Average (SMA), indicating weakening bullish momentum. The combination of resistance from a previously formed order block and fading upward momentum suggests a potential transition in market sentiment from accumulation to distribution.

USOil Key Levels

Resistance Levels: $80.70, $84.50, $87.60
Support Levels: $65.30, $72.20, $55.20

USOil Long-Term Trend: Bullish

USOil has firmly tapped into a higher timeframe order block and is beginning to show early signs of rejection. The current bearish movement emerging from the order block is aimed toward the $65.30 level, where a prior Market Structure Shift (MSS) was observed. The presence of long upper wicks in this zone reinforces signs of selling pressure.

Looking ahead, a deeper retracement may be expected if the price fails to reclaim and hold above the $75 mark. A decline toward the $65.30 level appears likely as it represents a logical liquidity target. A break below this point could open the way toward the $55.20 support zone. However, a strong return of buying volume that pushes the price back above $76 could invalidate the bearish outlook. Until such a shift occurs, market behavior indicates that sellers are regaining control following a liquidity grab at elevated levels. Traders seeking entry opportunities may benefit from forex signals to navigate such price reversals.

USOil Short-Term Trend: Bearish

USOil has broken structure to the downside after forming a swing high at $75.10 and has since failed to create a new higher high, suggesting diminishing bullish momentum. The price is now consolidating around the 9-period SMA and is retesting an ascending trendline. A break below this trendline could lead to an accelerated downward movement.

The Stochastic Oscillator is crossing downward near its mid-level, indicating increasing bearish momentum. If the price sustains a break below $72.20, it may pave the way for a move toward the next key support at $65.30.

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