WTI OIL

16 May 2025
WTI Oil: 4-hourly and daily chart technical view

Daily Chart: Longer-Term Bias: Neutral

Resistance
  • 64.25 then 66.89
Support

  • 60.45 then 58.00

4-Hour Chart: Short-Term Outlook: Bearish

Resistance

  • 61.07 then 62.19
Support

  • 60.44 then 56.00

Daily Chart: Longer-Term Bias: Neutral

4-Hour Chart: Short-Term Outlook: Bearish

Friday 16th May

The daily chart shows a neutral longer-term bias for WTI oil, with the price trading within a broad descending channel marked by orange trendlines. Recent price action has encountered resistance near the 50-day SMA (magenta line) at 64.25, which has been reinforced by the previous horizontal resistance level at 66.89. The 200-day SMA (green line) at 70.11 remains well above the current price, indicating that the longer-term trend is still bearish, but the price is attempting to recover. Support is evident at the lower channel boundary near 58.00 and the key horizontal level at 60.45, which is currently acting as near-term support. The stochastic momentum indicator (SMI) is climbing toward overbought levels at 34.64, but a bullish divergence is visible as the price has made lower lows while the SMI has made higher lows, suggesting waning downside momentum and potential for a rebound. However, the overall trend remains range-bound within the descending channel. Traders should watch for a breakout above the 50-day SMA and resistance at 66.89 for a more bullish confirmation. Downside risk targets the channel floor near 58.00, with a stop loss recommended just below that level to manage downside risk.

The 4-hour chart for WTI oil shows a short-term bearish outlook, with the price failing to sustain a move above the 50-period SMA (magenta line) at 61.07. The price is currently testing this resistance after a bounce from support near 56.00, close to the lower channel line from the daily chart. The 200-period SMA (green line) at 62.19 is just above the current price, presenting additional resistance that has capped recent rallies. The stochastic momentum indicator (SMI) has bounced from oversold territory but remains below -50%, indicating that bearish momentum still dominates the short term despite the minor recovery. The price needs to break and hold above both moving averages (61.07 and 62.19) to signal a reversal and a shift to bullish momentum. Support is strong near 60.44 and further below at recent lows around 56.00. Failure to hold these levels risks continuation down toward the daily chart’s channel floor. Traders should consider stop losses just above the 50-SMA at 61.07 when taking short positions, while bullish traders should wait for confirmation of a break above 62.19 before entering.

Daily Chart: Longer-Term Bias: Neutral

 

4-Hour Chart: Short-Term Outlook: Bearish

 

Thursday 15th May

The daily chart for WTI Oil displays a neutral longer-term bias. The price is currently consolidating below the 50-day SMA at 64.35 and above the 14-day SMA near 60.52, indicating some short-term support but limited upside momentum. The 200-day SMA around 70.17 remains well above price, signaling that the longer-term downtrend is still intact. Price action forms a descending wedge pattern with defined lower highs and a flat support near 58.00, suggesting potential for a future breakout but currently indecisive. The Stochastic Momentum Index (SMI) is near 29.6%, indicating modest bullish momentum but not confirming strong upward conviction. There is no significant momentum divergence detected. Key resistance levels are 64.35 (50-day SMA) and 68.69, while support levels lie at 60.52 (14-day SMA) and 58.00. Traders should watch for a breakout above 64.35 to signal bullish momentum or a breakdown below 58.00 for renewed bearish pressure. A stop loss below 58.00 is advisable for downside protection.

Price is currently trading at 62.96, slightly above the 200-period SMA at 62.45 and the 14-period SMA near 62.80, which is acting as a dynamic resistance line. The inability to decisively close above the 14-SMA after approaching the 200-SMA suggests hesitation and a potential short-term reversal. The 50-period SMA at 60.55 continues to offer a significant support level below, serving as a critical floor should selling pressure increase. The Stochastic Momentum Index (SMI) is sharply turning downwards from overbought territory and crossing below its signal line, signaling weakening bullish momentum and reinforcing the bearish short-term outlook. This bearish momentum divergence — with price stalling near resistance and momentum fading — increases the likelihood of a pullback. Key resistance zones to watch are 62.80 (14-SMA) and 62.45 (200-SMA), with support at 60.55 (50-SMA) and a further target near the long-term ascending trendline around 56.00. Traders aiming to trade with the bearish bias could look for downside targets first at 60.55, then potentially 56.00 if momentum sustains, placing stop losses just above 63.00 to protect against a breakout reversal. Overall, the 4-hour technical landscape remains bearish in the near term until price can break and hold firmly above both the 14- and 200-SMA resistance cluster.


Wednesday 14th May

The daily chart for WTI Oil presents a neutral longer-term bias. The price has been fluctuating between the 50-day (pink) and 200-day (green) moving averages, with neither of these averages providing clear directional bias. The Stochastic Momentum Index (SMI) is currently at 19.73, indicating a weak bullish momentum that may suggest a potential reversal or a gradual recovery from the previous bearish trend. Immediate resistance is found at 70.43, followed by 73.31. On the downside, support is at 64.45, and further support is at 60.66. Given the neutral trend, traders should watch for a breakout above 70.43 to confirm bullish momentum or a breakdown below 64.45 for further downside. A stop loss below 64.45 is recommended for those trading in the direction of an upward breakout.

The 4-hour chart for WTI Oil shows a bullish short-term outlook. The price has recently broken above key resistance levels, moving above the 50-period (pink) and 200-period (green) moving averages, signaling short-term strength. The Stochastic Momentum Index is at 59.50%, indicating that momentum is still in positive territory but approaching neutral levels. Immediate resistance is at 63.75, with the next target at 64.45. Support is found at 62.85, with further downside potential toward 62.00 if the price consolidates. Given the current market conditions, traders may look to enter long positions with a stop loss just below 62.00 for protection against a potential pullback.


Tuesday 13th May

The daily chart of WTI oil indicates a neutral bias. The current price of 61.71 is situated between the 14-day (blue line) at 60.5 and the 50-day (pink line) at 64.5. The 200-day (green line) at 70.27 is providing significant resistance, with the price trading below this level. The Stochastic Momentum Indicator (SMI) at -0.57% suggests weak momentum, potentially signaling consolidation or a slight pullback before any further upward movement. Resistance is seen at 64.5 and 70.27, while support is found at 60.5 and 56.00. If the price fails to break above 64.5, it may encounter resistance near 70.27. A stop loss just below 60.5 would be advisable to protect against any downside risk if the market moves lower.

The 4-hour chart shows a bullish short-term outlook, with the price at 61.71 currently trading just above the 14-day (blue line) at 61.7 and the 50-day (pink line) at 59.5. The 200-day moving average (green line) at 62.8 is providing resistance, with the price attempting to break above it. The Stochastic Momentum Indicator (SMI) at 42.18% suggests moderate upward momentum. Resistance is immediately found at 62.8, with further resistance at 66.89. If the price continues its upward move, it may test these levels. Support is located at 59.5, with additional support at 57.00 if the price faces a pullback. Traders should set a stop loss below 59.5 to manage downside risk in case of a correction.

Monday 12th May

The daily chart shows a bearish trend, with the price currently trading below the 200-day simple moving average (SMA) at 70.3528, which confirms the longer-term downtrend. The price is moving within a well-defined descending channel and is testing the lower support zone at 60.5249. The 50-day SMA at 64.6289 is acting as a strong resistance, and the price has been unable to break above it, which indicates that selling pressure is dominant. The Stochastic Momentum Index (SMI) is in oversold territory at -13.90%, signaling a lack of buying momentum and supporting the bearish outlook. Given that the price is below both the 200-day and 50-day SMAs, further downside is likely. Immediate resistance is at 64.6289, followed by the 66.8900 level, while support is seen at 60.5249, with a deeper target near 58.0000. Traders should consider shorting the asset, with a stop loss placed above 64.6289 to protect against a potential breakout.

On the 4-hour chart, the price has been moving higher, suggesting a shift in momentum. It is currently above the 50-period SMA at 59.1474 and approaching the 63.0840 resistance zone. The 14-period SMA has crossed above the 50-period SMA, indicating a short-term bullish crossover, which is typically a sign of upward momentum. The price has also recently broken above the recent trendline resistance, confirming a short-term reversal. The Stochastic Momentum Index (SMI) is in the overbought territory at 81.08%, which suggests the current rally may be near exhaustion. However, the SMI is still holding strong, and as long as the price stays above the 59.1474 support, it is likely to continue pushing higher toward the 63.0840 level. If this resistance is breached, the next upside target is at 64.0000. Traders should exercise caution as the overbought conditions could lead to a pullback, and a stop loss could be placed just below the 59.1474 level to protect against any reversal.

Friday 9th May

The daily chart shows a bearish bias, with the price continuing to respect a strong downtrend. The recent price action has formed a lower-highs pattern, while the 200-day simple moving average (SMA, green line) at 68.69 acts as a major resistance level. The price is currently trading below the 50-day SMA (pink line) and 14-day SMA (blue line), both of which indicate short-term weakness. Notably, the stochastic momentum index is in oversold territory at -28.22%, signaling potential for a price rebound if momentum shifts. However, given the prevailing downtrend and the fact that the price is still within a descending channel (marked by the orange trendlines), the upside potential seems limited unless the price breaks above the 50-day SMA around 64.78. Immediate resistance is located at 64.78, with a more substantial resistance around 70.44. On the downside, support is identified at 60.65, with a potential breakdown below this level targeting the 56.00 psychological level. A stop loss above 64.78 would be prudent for any bearish positions, with the downside target at 56.00 offering a reasonable risk-reward ratio.

On the 4-hour chart, the outlook is bullish, with a clear shift in momentum. The price recently broke above the orange downtrend line, which suggests that the immediate downtrend may be reversing. The price is now trading above the 50-period SMA (pink line) and the 14-period SMA (blue line), which indicates short-term strength. The stochastic momentum index has also moved into the positive territory, currently at 61.27%, confirming bullish momentum. Resistance is seen at 63.33, with a further upside potential towards the key level at 68.69. If the price can sustain above the 63.33 level, it may aim for the next resistance at 66.69. On the downside, support is identified at 59.11, with a potential target of 57.00 if the support is broken. Traders should monitor the price action closely around the 63.33 level to confirm whether the uptrend can be maintained. A stop loss placed just below 59.11 would help mitigate downside risk in case of a pullback.

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