Crude US-Oil – Bullish Recovery Potential After Massive Sell-OffAfter a significant breakdown from the rising channel structure WTI Crude Oil experienced an aggressive drop from the $73–$74 region leading to a change of character ( CHOCH ) and breaking through key trendline support This movement marked the end of the previous bullish structure and ushered in a sharp bearish impulse
Key Observations:
Bearish Divergence A clear bearish divergence at the top near $73 signaled weakening momentum which was followed by a steep decline
CHOCH Confirmation The structure break below trendline support confirmed the shift from bullish to bearish sentiment
Liquidity Grab Below $59 Price aggressively swept liquidity below $59 (marked by the blue zone) before bouncing back hinting at a potential bottom or temporary support zone.
Current Price Action:
WTI is now consolidating within a range (gray box) after the bounce trading around $61.50–$62.00.
If the price holds above $60 and manages to build a base we may see bullish continuation toward the next resistance levels.
Bullish Scenarios:
1. Short-Term: A breakout above the range could target the $65.00 and $66.37 levels
2. Medium-Term: Sustained momentum could push price toward $67.68 and possibly $68.81 where higher timeframe resistance lies.
Conclusion: As long as price remains supported above the $58.93 liquidity zone and builds strength above $61–$62 the recovery setup remains valid This could offer a great opportunity for bulls to step in and target the inefficiencies left behind
during the sell-off $59.00
Resistance: $65.20, $66.50, $67.60, $69.00
Support: $60.50, $59.50
Always manage your risk and wait for confirmation before entering any positions...
