USOil (WTI) Shows Bearish Trend Amid Temporary Bullish Correction

Market Analysis – April 18

USOil exhibits a bearish trend while undergoing a temporary bullish correction. Technical indicators on the daily chart point to short-term upward movement within a larger bearish framework. The Relative Strength Index (RSI) currently stands at 45.83, rebounding from previous oversold levels and signaling emerging bullish momentum, though it remains below the neutral 50 mark. This corresponds with the recent bounce from the support zone near $61.80, just above the 9-period Simple Moving Average (SMA) positioned at $61.30. Price movement above this short-term average suggests the pullback may extend toward higher resistance levels.

USOil Key Levels

Resistance Levels: $65.30, $72.20, $80.70
Support Levels: $61.80, $55.20, $52.00

USOil Long-Term Trend: Bearish

Recent price action reveals that USOil has established a temporary bottom around the $60.00 region, bouncing strongly after a steep bearish decline. The ongoing recovery is now approaching the $65.30 resistance level, which corresponds with earlier structural highs. Just above this lies the bearish order block around $70.00, a zone that previously acted as a supply region, exerting significant downward pressure. The upper order block at $72.20 remains untouched and represents another confluence zone that could limit further bullish attempts. Price is currently trading around $63.70, indicating a short-lived rebound within clearly defined levels.
The forecast for USOil indicates that this pullback may continue toward the $65.30 resistance, possibly testing the $70.00 order block before facing renewed selling interest. Should price fail to break decisively above $70.00, the broader bearish trend is expected to resume, with a potential decline first targeting the $61.80 level, then $55.20, and eventually $52.00 if selling pressure strengthens. The overarching outlook remains bearish unless price breaks and sustains above the $72.20 resistance, which would invalidate the current bearish scenario. Traders relying on forex signals may find these levels useful in determining possible entry or exit points.

USOil Short-Term Trend: Bullish

On the 4-hour chart, USOil is displaying bullish momentum following the formation of a breaker block near $61.80. Price has broken structure, marked by a market structure shift, and is now trading above the 9-period SMA, which has turned into dynamic support.
The RSI stands at 63.42, reflecting strong buying activity but still remaining below overbought territory. If bullish momentum persists, the next significant target lies around the $65.30 resistance level.

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