Crude Oil Gets Trapped Back Inside 3-Year Down trending ChannelAfter failing to close above the upper border and the 78 resistance level, and amid renewed hopes for a Middle East ceasefire, oil prices dropped sharply back toward the neckline of the inverted head and shoulders formation—initially broken ahead of the recent war escalation—at 64.70.
A sustained move below that neckline could target crude prices toward the mid-zone of the established channel, near 63.40 and 61.40, where another rebound may take shape.
On the upside, if a clear recovery re-emerges above the 72-mark, the potential for a breakout above the 78-resistance could return, opening the door to revisit the 80 and 83.50 highs.
— Razan Hilal, CMT
