USOil (WTI) Shows Decrease in Buying Pressure as Price Approaches Supply Zone

Market Analysis – April 25

USOil shows a decrease in buying pressure as the price approaches the supply zone. Technical indicators on the USOil daily chart reflect a bearish tone. The Stochastic Oscillator (14,1,3) reads 78.42 and 63.24, nearing the overbought region, which often signals potential downward movement. Additionally, the 9-day Simple Moving Average (SMA), currently at $62.50, remains relatively flat but has served as dynamic resistance to recent price attempts to rise, highlighting the weakness in bullish momentum.

USOil Key Levels

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

USOil Long-Term Trend: Bearish

Price action reinforces the bearish sentiment as USOil has repeatedly failed to break above the $65.30 resistance level. Previous rallies were rejected within the $67.00–$68.00 range, forming a bearish breaker block (BB) followed by a significant drop. The price is now consolidating below $65.30, maintaining the pattern of lower highs and lower lows. Recent bullish candles lack strong volume or follow-through, indicating buyer exhaustion. The price structure below $65.30 and the unsuccessful retest of the order block near $72.20 further affirm bearish control.
The outlook remains bearish, with potential movement toward $55.20 and possibly $52.00 if downward momentum persists. A decisive break and close below the $61.80 support level would likely hasten the decline. With price trading beneath the key resistance and the 9-SMA acting as a dynamic ceiling, sellers are favored in the current market setting unless a bullish catalyst forcefully breaks through the breaker block.

USOil Short-Term Trend: Bearish

USOil on the 4-hour chart shows consolidation below the $65.30 resistance level, with price repeatedly rejecting that zone. The 9-period SMA at $62.70 is currently acting as dynamic support, but bullish momentum remains weak. A potential lower high formation suggests a bearish continuation toward the $61.80 and $55.20 support levels. Traders monitoring forex signals may find confirmation for further downside moves unless price breaks above $65.30 with strong volume, as sellers are expected to remain in control.

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