4-Hour Chart: Short-Term Outlook: Bullish

Thursday 5th June

The daily chart presents a neutral outlook, with the price currently hovering near the 50-day moving average (pink line) at 62.68, suggesting some resistance at this level. The 14-day moving average (blue line) is slightly below the 50-day, reinforcing the consolidation within this range. The 200-day moving average (green line) at 69.09 is positioned above the current price, acting as a longer-term resistance level rather than support. The Stochastic Momentum Indicator (SMI) at 23.15% indicates weak momentum, implying that the price could remain range-bound in the near term. Immediate resistance is seen at 63.00, followed by 63.30, and a significant resistance level at 63.80. Support levels are at 62.00, followed by 61.64. For traders wishing to enter long positions, a stop loss below 61.64 would be prudent to protect against downside moves.

The 4-hour chart presents a bearish outlook as the price has recently failed to break through the resistance around 63.30, which is the same level seen on the daily chart. The price has been oscillating below this resistance and is currently trending below the 50-period moving average (pink line) at 62.81, with the 200-period moving average (green line) at 61.64 providing some support. The SMI at 20.50% indicates a continuation of negative momentum, further supporting the bearish stance. Immediate resistance is at 63.00, with a key level at 63.30, while support is at 61.64, followed by 60.80. A stop loss for a short trade should be placed just above 63.30 to limit any unexpected reversals.

Wednesday 4th June

The daily chart for WTI crude oil reflects a neutral longer-term bias, with price action consolidating within a broad descending channel defined by the orange trendlines. Price is currently testing resistance near the 50-day SMA (pink) at 62.84, while the 14-day SMA (blue) is trying to push higher and cross above. However, both remain beneath the declining 200-day SMA (green) at 69.17, confirming that the broader trend remains structurally weak. The recent bounce off lower support around 56.00 suggests some short-term accumulation, supported by a mild bullish divergence between price and the Stochastic Momentum Index. The SMI has climbed from oversold territory to 22.65%, showing early signs of improving momentum, but still well below a confirmation threshold. For now, the price remains capped under the 62.84 zone. A close above this level could target 66.90, while failure to break out could result in another retest of the 60.00 and 58.00 support levels. The outlook remains neutral until a decisive breakout occurs. Stops for long trades can be placed below 59.00 to protect against downside volatility.

The 4-hour chart for WTI crude oil leans bearish in the short term despite the recent bounce. Price is hovering just below the 63.23 resistance zone, with multiple failed attempts to break out, creating a flat top and suggesting overhead supply. While the 14-, 50-, and 200-period SMAs are all converging, they lack directional slope, indicating a range-bound and indecisive structure. The Stochastic Momentum Index has surged into overbought territory at 68.68%, but the price has stalled—raising the possibility of a bearish divergence forming. Unless there is a sustained breakout above 63.23, the setup points to a potential short-term pullback toward the 61.64 area (200-SMA), and possibly 60.00. A break below the 61.64 level would confirm bearish intent. Resistance remains at 63.23 followed by 66.00, and support is at 61.64 then 60.00. Traders should place a stop above 63.50 if entering short positions, as a break above that would invalidate the bearish bias.

Tuesday 3rd June

The daily chart for WTI crude oil displays a neutral longer-term outlook as price action remains trapped in a horizontal consolidation range beneath key resistance at 62.95, marked by the 50-day SMA (pink). The recent price recovery off the $56.00 support, accompanied by a bullish divergence between price and the Stochastic Momentum Index (SMI), suggested a potential base was forming. However, momentum has since faded, with the SMI turning down again from a lower high near 15%, reflecting hesitation in follow-through buying. Price remains below the 200-day SMA (green) at 69.24, which continues to slope downward — a broader bearish signal. Additionally, the 14-day SMA (blue) remains below the 50-day, indicating that the shorter-term trend remains weak. A break above 62.95 would be required to shift the bias back to bullish, with upside targets at 66.69 and 72.08. Support is seen at the psychological $60.00 level, followed by the recent low near $56.00. Traders considering long setups should use a stop loss below $59.00 to manage downside risk.

The 4-hour chart reveals a bearish short-term bias as WTI struggles to sustain gains above the 63.30 resistance level, despite a brief intraday spike. The price was quickly rejected after testing this level, forming a potential bull trap. Meanwhile, the moving averages — 14-period SMA (blue) and 50-period SMA (pink) — are beginning to flatten out just above the 200-period SMA (green) at 61.65, indicating that bullish momentum is stalling. The Stochastic Momentum Index has turned down from overbought levels, currently printing 54.13%, hinting at the possibility of renewed selling pressure. Additionally, there is early evidence of bearish divergence forming, with the SMI unable to confirm the recent price high. If the rejection holds, the price could rotate back toward key support at 61.65, and below that, 60.00. A break and hold beneath 61.65 would confirm the bearish scenario. Short positions may be considered with a stop loss above 63.50 to protect against another upside breakout attempt.

Monday 2nd June

The daily chart for WTI crude oil remains neutral, with price consolidating in a horizontal range below the 50-day SMA and inside a broader descending channel. The current price is hovering near the 14-day SMA (blue) at 61.63, and just below the 50-day SMA (pink) at 63.07, indicating overhead resistance is still intact. The 200-day SMA (green) at 69.29 continues to slope downward, confirming that the medium-term trend remains under pressure. Despite repeated attempts, bulls have been unable to reclaim the mid-April breakdown area. However, the Stochastic Momentum Index (SMI) at 11.23% is curling up from near-oversold levels and is forming a bullish divergence relative to price — the SMI has been making higher lows even as price tested new local lows in May. This divergence could precede a breakout attempt. Resistance is seen at 63.07 (50-day SMA), followed by 66.69. On the downside, support lies at 60.00, with stronger demand around the lower channel boundary at 58.00. A break below 58.00 would confirm a bearish continuation, while a daily close above 63.07 could turn the bias cautiously bullish. Long trades should use a stop just below 60.00.

The 4-hour chart shows a bullish short-term outlook as price breaks out above the cluster of key moving averages. The price is currently trading above the 14-period SMA (blue) and the 50-period SMA (pink), both converging near 61.63, and has also moved decisively above the 200-period SMA (green) at 61.60. This bullish crossover structure confirms a short-term shift in favour of buyers. Momentum supports the breakout, with the Stochastic Momentum Index rising from oversold levels and currently reading -17.52%, with a strong bullish crossover in play. Notably, the recent breakout follows a period of tight consolidation, suggesting potential for further upside. Immediate resistance is at 63.69, a level that has capped multiple rallies since early May. A clean break above this level could open a path toward 66.00. Support is seen at 61.60 (200-SMA), with stronger support around 60.00, the former base of the consolidation range. A stop loss for long positions can be set just below 61.60 to protect against a failed breakout.

Friday 30th May

The daily chart shows the price in a broad descending channel outlined by the thick orange trendlines, indicating a longer-term downtrend pressure. The price has been struggling to decisively break above the 50-day (magenta line) and 14-day (light blue line) moving averages, which currently act as near-term resistance around the US$63.18 level. The 200-day moving average (dark green line) remains well above the current price near US$69.34, reinforcing the longer-term bearish context. Support is found near the lower boundary of the descending channel around US$56.00, a key level from past price reaction points. The stochastic momentum indicator (SMI) is currently declining but remains above the rising orange trendline support near 18.68%, showing some bullish divergence compared to the price action that is range-bound, suggesting a potential for an upward correction within the broader downtrend. Traders should watch for a break above US$66.69 to challenge resistance near US$69.35 and potentially US$72.08; failure to hold above US$62.10 would signal a likely test of the channel bottom around US$56.00. Recommended stop loss would be just below this channel support near US$55.50 to mitigate downside risk.

The 4-hour chart displays more immediate bearish pressure, as price is hovering just below the 50-period moving average (magenta line) and the 200-period moving average (dark green line) near US$61.61, which currently act as resistance. The price recently failed to sustain gains above US$63.69, reflecting a lack of bullish momentum in the short term. The descending channel’s lower boundary on this timeframe also aligns near US$56.00, providing strong support. The stochastic momentum indicator has dropped below the key 20% threshold and is trending downward around 1.71%, indicating oversold momentum but no immediate reversal signal. This suggests further downside pressure is possible before any significant bounce. Key resistance remains at US$63.69, while support lies at US$61.61 and US$56.00. Short-term traders might consider downside targets near the channel bottom at US$56.00, with a stop loss set just above the 50-period moving average near US$63.80 to limit losses if a reversal occurs.