After several months of holding firm, USOIL has finally broken below its key support zone around $67–$70, which had acted as a floor since mid-2021. This is a significant technical development, and the current price action is showing a classic bearish retest of that broken structure.
Technical Breakdown:
Support Broken:
The $67–$70 zone was tested multiple times over the past 2 years. Price has now cleanly broken through it and is struggling to reclaim it.
Retest in Progress:
Price is currently hovering around $62.36 and failing to push back above the broken support. This retest is textbook and could confirm further downside.
Market Structure:
Lower highs and lower lows dominate the weekly chart = clear bearish trend.
Bearish Targets:
Target 1: $53.50 – Previous minor demand zone from 2021.
Target 2: $41.50 – Strong historical support and potential major bounce area.
Invalidation Zone:
If price closes above $70 on the weekly chart, the breakdown would be invalidated and we’ll reconsider our bias.
Confluence:
Broken multi-year support
Bearish retest on weekly timeframe
Clear downside liquidity below
Summary:
Bias: Bearish
Setup: Short on confirmation of rejection below $67
Timeframe: Weekly / Daily
This is a high-probability setup if the rejection continues. Look for further bearish price action on the daily or 4H chart for refined entries. As always, manage risk carefully.
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Technical Breakdown:
Support Broken:
The $67–$70 zone was tested multiple times over the past 2 years. Price has now cleanly broken through it and is struggling to reclaim it.
Retest in Progress:
Price is currently hovering around $62.36 and failing to push back above the broken support. This retest is textbook and could confirm further downside.
Market Structure:
Lower highs and lower lows dominate the weekly chart = clear bearish trend.
Bearish Targets:
Target 1: $53.50 – Previous minor demand zone from 2021.
Target 2: $41.50 – Strong historical support and potential major bounce area.
Invalidation Zone:
If price closes above $70 on the weekly chart, the breakdown would be invalidated and we’ll reconsider our bias.
Confluence:
Broken multi-year support
Bearish retest on weekly timeframe
Clear downside liquidity below
Summary:
Bias: Bearish
Setup: Short on confirmation of rejection below $67
Timeframe: Weekly / Daily
This is a high-probability setup if the rejection continues. Look for further bearish price action on the daily or 4H chart for refined entries. As always, manage risk carefully.
Like & Follow for more clean, high-timeframe breakdowns!
Note
Trading Psychology Insight – The Retest TrapQuick mindset lesson related to this USOIL setup:
When price breaks a major support and then retests it, most traders get caught off guard.
Here’s what usually happens:
FOMO kicks in: Traders see the bounce and assume the move is reversing.
Hope bias takes over: They ignore structure and think it’s a fakeout.
They enter long right into smart money’s sell zone.
The truth?
Retests are designed to trap emotional traders.
Smart money uses this bounce to re-enter short at a better price.
The key is patience and discipline. Wait for rejection, confirmation, and then act not before.
Lesson: Discipline beats prediction every time.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.