USOil (WTI) Signals Downtrend With Weak Indicators And Bearish Structure

Market Analysis – May 2

USOil signals a downtrend, supported by weak indicators and a bearish structure. On the daily chart, the 9-day Simple Moving Average (SMA) is sloping downward and currently positioned above the price action, reinforcing the bearish momentum. The RSI (Relative Strength Index) is around 39.54, while the signal line sits at 41.16, reflecting bearish sentiment and limited bullish strength. With the RSI remaining below the 50 mark, sellers are evidently in control, and there is still room for further downside before oversold conditions are met.

USOil Key Levels

Resistance Levels: $61.80, $65.30, $72.20
Support Levels: $55.20, $52.00, $50.10

USOil Long-Term Trend: Bearish

Price action reveals a clear rejection from the $61.80 resistance level, which aligns with a bearish order block zone. The sharp rejection following a minor rally confirms the formation of a lower high, maintaining a market structure that favors the bears. A previous liquidity sweep above $63.90 failed to sustain upward momentum and instead triggered a reversal.

In light of this bearish setup, USOil is poised to continue its descent toward the $55.20 support level. Should this level fail to hold, the next potential targets are $52.00 and possibly $50.10. As long as the price remains below $61.80 or the bearish order block zone, any bullish attempts are likely to encounter strong resistance, presenting opportunities for short positions, particularly for traders following forex signals.

USOil Short-Term Trend: Bearish

USOil is nearing a key resistance zone between $61.80 and $63.90, marked by a previous order block and an area of sell-side liquidity. The current bullish retracement is testing the 9-period SMA, hinting at a temporary increase in short-term momentum.
However, the RSI remains below 50, signaling that bearish strength continues to dominate despite the recent bounce. A rejection from this resistance zone could prompt a renewed move toward the $55.20 support level.

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