Crude Oil Technical Analysis – A mix of bearish drivers sent prices to cycle lows

Fundamental Overview

Crude oil has been under some strong pressure lately as a mix of negative supply and demand drivers weighed on the market.

In fact, on the supply side, OPEC+ recently surprised announcing plans to increase production starting in April.

The timing of the move wasn’t good as the markets recently started to worry about the demand side as growth fears grew amid weaker US data and a selloff in the US stock markets.

Crude Oil Technical Analysis – Daily Timeframe

On the daily chart, we can see that crude oil sold of all the way back to the September 2024 lows. We have a downward trendline defining he bearish momentum. The sellers will likely lean on the trendline to position for a drop into the key 63 support zone targeting a break below it. The buyers, on the other hand, will want to see the price breaking higher to pile in for a rally back into the 80.00 handle.

Crude Oil Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we have a strong resistance zone around the 68.00 handle where we can also find the confluence with the trendline. This is where the sellers will likely step in with a defined risk above the trendline to position for new lows. The buyers, on the other hand, will look for a break higher to regain control and start targeting a rally into the 80.00 handle.

Crude Oil Technical Analysis – 1 hour Timeframe

On the 1 hour chart, there’s not much else we can add here as the sellers will look for a rejection around the resistance zone, while the buyers will look for a break higher. The red lines define the average daily range for today.

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Today we conclude the week with the US University of Michigan Consumer Sentiment report.