Crude Oil - Double Bottom 📊 Market Overview:
Price is trading around $62.58, approaching a key horizontal resistance near $63.50, which has acted as a strong supply zone in the past.
The chart shows a bullish setup with a long position already marked, targeting the $70.60 zone, a major previous top.
A clear risk/reward structure is in place, suggesting a well-defined trade plan.
🔍 Key Technical Zones:
🔼 Resistance Zone:
63.50 – Immediate resistance
Price has struggled here before; needs a clean break to validate bullish continuation.
70.60 – Main target zone
This is the previous strong sell-off origin; high probability of rejection if reached again.
🔽 Support Zone:
61.26 – Marked stop loss
Protects the trade in case of a false breakout or quick reversal.
54.38 – Major demand
Long-term support from April lows.
📈 Trade Idea Based on Chart Setup:
✅ Long Setup (Bullish Bias)
Entry: 62.58 (current price)
Stop Loss: 61.26
Take Profit: 70.60
Risk/Reward Ratio: ~1:4+ (very favorable)
Conditions for entry confirmation:
Break and close above 63.50 on strong volume or bullish engulfing
Retest of 63.50 as support could provide a secondary, lower-risk entry
📉 Bearish Scenario (Invalidation):
Failure to break 63.50 cleanly + a bearish rejection pattern could lead to a deeper correction.
Break below 61.26 invalidates this bullish structure.
In that case, next support lies near $58.00 and below.
🧠 Fundamental Angle to Consider:
WTI Crude Oil is highly sensitive to:
OPEC decisions
US inventory reports
Geopolitical tensions or Middle East developments
USD strength/weakness
Make sure to monitor the weekly EIA Crude Oil Inventory report and Fed updates, as these can drastically affect volatility.
📌 Summary:
Current Bias: Bullish (if 63.50 breaks cleanly)
Key Levels:
Support: 61.26 / 58.00
Resistance: 63.50 / 70.60
Strategy: Buy breakout above 63.50 or on successful retest; manage SL at 61.26
