The downtrend dominates, the focus needs attentionGeneral crude oil market and WTI crude oil technical chart TVC:USOIL Still in a downward trend.
Trump revoked Chevron's license to operate in Venezuela, which has fueled supply-side market concerns and supported a recovery in oil prices, but they are still on a downtrend and trade policy uncertainty has limited a recovery in demand expectations. The focus of the crude oil market will still need to pay attention to changes in the geopolitical situation, the US Dollar index, and the Trump administration's trade policy.
Notable technical levels are as follows.
Support: 68.52USD
Resistance: 70 - 71.43USD
USOUSD trade ideas
USOILAs of February 27, 2025, WTI Crude Oil (USOIL) is trading at approximately $72.15 per barrel, reflecting a 0.45% increase from the previous close.
Key support levels are identified at $71.80, $71.50, and $71.00, while resistance levels are at $72.50, $72.80, and $73.00. The pivot point stands at $72.00.
The U.S. Energy Information Administration (EIA) forecasts that Brent crude oil will average $74 per barrel in 2025, with a decline to $66 per barrel in 2026.
ENERGY INFORMATION ADMINISTRATION
Recent analyses suggest that crude oil prices are recovering, with potential gains if prices hold above $72.30.
ECONOMIES
The United States Oil Fund (USO), an exchange-traded fund that tracks the price of WTI Crude Oil, is currently priced at $75.28, with an intraday high of $75.66 and a low of $74.06
USOIL - Short Trade (28th Feb 2025)This is a short trade idea on Crude Oil.
Basically, i'm not convinced of this sudden rejection. This is just manipulation to me. I want to target the liquidity resting below. I think we are going downtown to a monthly sSIBI at around 57.
Liquidity and efficiency rules the market. Everything else is nonsense.
- R2F Trading
Crude Oil - The Manipulation of Trend LinesIn this example on Crude Oil I give some insight into how trendlines and traditional support & resistance theories may be used by "smart money" for the purposes of facilitating their positions via inducing liquidity.
Basically, trendlines are drawn along the highs or lows of price movements and help to identify the direction and strength of a trend. They serve as visual guidelines for traders, highlighting potential turning points or continuation patterns. Support and resistance levels are areas where the price historically finds a floor or ceiling, leading many market participants to place their entry and exit orders around these zones. Because these levels are based on historical price action, they hold significant psychological value among retail traders.
The Mechanism of Liquidity Manipulation
Liquidity Pools and Stop Loss Clusters:
Retail traders often cluster their stop losses near prominent support or resistance levels. Smart money is aware of these liquidity pools and can engineer price moves to trigger these stops. For example, by intentionally nudging the price through a known support level, institutional players can trigger a cascade of stop-loss orders. This “stop run” injects a burst of liquidity into the market, which can then be absorbed as positions are liquidated at less favorable prices for retail traders.
False Breakouts and Reversals:
Another common tactic involves creating false breakouts. A price move that breaks above a resistance level (or below a support level) might initially appear to signal a new trend. However, smart money can deliberately drive prices just past these technical barriers to trigger stop-loss orders and entry orders. Once sufficient liquidity is collected from the triggered orders, they may reverse the move. This reversal traps traders who anticipated a sustained breakout, leaving them with positions that quickly turn against them.
Exploiting Herd Behavior and Market Sentiment:
The widespread reliance on technical analysis means that many traders have similar expectations about where price will reverse or accelerate. This collective mindset, or herd behavior, creates predictable zones of liquidity. Smart money can capitalize on these self-fulfilling prophecies by anticipating the mass reaction around key trendlines and support/resistance levels. They use this insight to position themselves ahead of the crowd, executing large trades that move the market in their favor.
Strategic Benefits for Smart Money
By manipulating these common technical levels, smart money participants can:
Maximize Efficiency: Accumulate or distribute large positions with minimal market impact by tapping into pre-existing liquidity pools.
Control Market Direction: Influence short-term price movements to create advantageous conditions for larger trades.
Enhance Risk-Reward Profiles: Trigger stop losses at critical junctures, effectively reducing their own risk while capitalizing on forced exits from retail traders.
Conclusion
While trendlines and support/resistance are invaluable tools for assessing market structure and potential price movements, they also serve as instruments for liquidity manipulation by experienced market participants. The predictable nature of stop-loss placements and entry orders around these levels creates opportunities for smart money to trigger cascades of orders, generating liquidity in their favor. As a result, retail traders must be aware of these dynamics and consider them when planning their trades, acknowledging that what appears to be a genuine breakout may, in fact, be a carefully orchestrated move to capture liquidity.
This nuanced understanding highlights the double-edged nature of technical analysis tools in modern trading. By appreciating both their utility and potential for manipulation, traders can better navigate the complex interplay between market psychology and institutional strategy.
Heading into 61.8% Fibonacci resistance?WTI Oil (XTI/USD) is rising towards the pivot which has been identified as an overlap resistance and could drop to the 1st support.
Pivot: 71.19
1st Support: 68.97
1st Resistance: 72.87
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USOILHead of OPEC
The current head of OPEC, or more specifically, the Secretary General of OPEC, is HE Haitham Al Ghais. He has been actively involved in various international energy forums and has written extensively on energy transitions and climate challenges
Fundamental Factors Affecting Oil Trade This Month
Several fundamental factors can influence oil trade this month:
1. OPEC Production Levels
Impact: OPEC's decisions on production levels can significantly affect global oil supply and prices. If OPEC decides to reduce production, it could lead to higher oil prices.
Bias: Bullish for oil prices if production is cut.
2. Global Demand
Impact: Economic growth in major oil-consuming countries like China and the U.S. can influence oil demand. Stronger economic growth typically leads to higher oil demand and prices.
Bias: Bullish for oil prices if global demand increases.
3. Geopolitical Tensions
Impact: Conflicts in oil-producing regions can disrupt supply, leading to price increases.
Bias: Bullish for oil prices if tensions rise.
4. Climate and Energy Policies
Impact: Shifts towards renewable energy and stricter climate policies can reduce long-term oil demand, potentially affecting prices.
Bias: Bearish for oil prices if policies favor renewables.
5. Inventory Levels
Impact: Changes in oil inventory levels can reflect supply and demand imbalances. Lower inventories suggest stronger demand or reduced supply, potentially boosting prices.
Bias: Bullish for oil prices if inventories decline.
WHAT IS SPR???????
The Strategic Petroleum Reserve (SPR) plays a significant role in influencing oil prices on a global scale by providing a buffer against supply disruptions and helping to stabilize markets during times of crisis. Here’s how the SPR affects oil prices:
1. Supply Buffer
Impact: Releases from the SPR can increase the global supply of crude oil, which can help reduce prices by alleviating shortages and mitigating the impact of supply disruptions caused by geopolitical events, natural disasters, or other crises.
Global Effect: This increase in supply can lead to lower oil prices globally, benefiting consumers by reducing fuel costs and helping to control inflation.
2. Market Sentiment and Expectations
Impact: Announcements of SPR releases can also influence market sentiment. Even before the actual release, the anticipation of additional supply can lead to lower oil prices as traders adjust their expectations.
Global Effect: This psychological impact can be significant, as it affects how investors perceive future supply and demand dynamics, potentially leading to price adjustments even before the physical oil is released into the market.
3. Short-Term vs. Long-Term Impact
Short-Term: SPR releases can provide immediate relief by increasing supply and reducing prices in the short term. However, their impact is generally limited to a few months due to the finite nature of the reserves.
Long-Term: Over the long term, SPR releases do not fundamentally alter global supply and demand dynamics. They are more of a temporary measure to stabilize markets during crises rather than a solution to chronic supply issues.
Examples of SPR Impact
Recent Example: In 2022, the U.S. released a significant amount of oil from the SPR to counter rising prices following the Russian invasion of Ukraine. This release, combined with international efforts, helped reduce gasoline prices by 17 to 42 cents per gallon in the U.S.23.
In summary, the Strategic Petroleum Reserve affects oil prices by providing a temporary buffer against supply shocks, influencing market sentiment, and offering short-term relief during crises. However, its long-term impact on global oil prices is limited by its finite capacity.
These factors can significantly impact oil prices and trading strategies this month.
Are You Ready to Cash In BIG!Crude oil prices are approaching a major buying zone, and this could be your golden opportunity to enter the market before the next big move 💰 Are we about witness a massive rally? In this Chart I'll Break down key technical levels, market analysis, and trading strategies to help you capitalize on this setup.
Your Ultimate destination for insights into Forex, Commodities, and Cryptocurrency trading. With over a decade of experience (FX Insight Hub) and his team focus on empowering traders through price action strategies, money Management, and trading psychology the essential pillars of success in today's market's.
USOIL 4H ROUTE MAP BULLISHHey there on 4HTF USOIL Looking for bullish candle from this level
And if flipped than we can see next ob support is 69.00 and 68.80
So in this point will take go long for 71 next target
If the flipped back and went downside than might see continue next support is 62
Thanks
CRUDE OIL (WTI): Waiting For a Signal to Buy
WTI Crude Oil is stuck on a major rising trend line on a daily.
To buy the market with a confirmation, I am waiting for a bullish
breakout of an intraday 4H resistance.
4H candle close above 69.3 will be a strong bullish signal.
A bullish continuation will be expected at least to 69.9 level then.
❤️Please, support my work with like, thank you!❤️
USOIL Will Grow! Buy!
Here is our detailed technical review for USOIL.
Time Frame: 1D
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is approaching a significant support area 69.17.
The underlined horizontal cluster clearly indicates a highly probable bullish movement with target 75.12 level.
P.S
We determine oversold/overbought condition with RSI indicator.
When it drops below 30 - the market is considered to be oversold.
When it bounces above 70 - the market is considered to be overbought.
Like and subscribe and comment my ideas if you enjoy them!
WTI - Will Oil Return to the Uptrend?!WTI oil is below the EMA200 and EMA50 on the 4-hour timeframe and is moving within its medium-term descending channel. If the downward trend continues towards the demand range, the next opportunity to buy oil with a risk-reward ratio will be provided for us. An upward correction of oil towards the supply range will provide us with an opportunity to sell it.
Despite markets showing resilience to geopolitical uncertainties following recent tensions between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky, any signs of economic weakness in the United States could prompt investors to raise their expectations for interest rate cuts. However, even if inflation data does not reinforce such expectations, it is unlikely to have a significant impact on the U.S. dollar.
In the United States, inflation remains a major challenge for the Federal Reserve. The overall Consumer Price Index (CPI) rose to 3% in January, dashing hopes for two rate cuts in 2025. However, the market’s reaction was not overly negative, as investors anticipated that the Personal Consumption Expenditures (PCE) index, which the Federal Reserve prioritizes, would be less severe than the CPI.
According to the Cleveland Federal Reserve’s Nowcast model, the core PCE index fell from 2.8% to 2.7% in January, while the overall PCE rate declined to 2.5%. If the actual data released on Friday aligns with these projections and no unexpected increases appear in the monthly figures, expectations for two 0.25% rate cuts may strengthen, exerting downward pressure on the U.S. dollar.
Meanwhile, U.S.President Joe Biden attempted to foster freer elections in Venezuela by extending an offer of cooperation, but this initiative failed. Now, Trump has announced that he will terminate this policy. He also noted that Venezuela is refusing to take back illegal migrants who had arrived in the U.S.
This agreement, which had eased sanctions on oil, gas, and gold, was partially revoked in April 2024 after opposition candidate María Corina Machado was barred from running in the presidential election. Trump wrote on Truth Social: “We hereby revoke the concessions that corrupt Joe Biden granted to Nicolás Maduro of Venezuela regarding the oil deal dated November 26, 2022, as well as the electoral conditions in Venezuela, which the Maduro regime has failed to meet. Additionally, the regime has not returned the violent criminals it sent to our great America as quickly as promised. Therefore, I am ordering that Biden’s ineffective and unmet concessions be revoked as of the March 1 extension date.”
Today, Trump escalated his stance on Venezuela by canceling Chevron’s oil license. This move was prompted by Caracas’s refusal to accept deportees and implement democratic reforms. President Trump announced that he would revoke the Biden-era license that had allowed Chevron to produce oil in Venezuela.
This decision appears to be a significant setback for Chevron, the American oil giant. On his social media platform, Truth Social, Trump stated that he would rescind the license granted on November 26, 2022, which had permitted Chevron to operate in Venezuela.
0227 USOIL looking for a correction on 4H chart!!!Hello traders,
On Wednesday, the internal alert stated: "On Wednesday, we are waiting for a new sideways trend in crude oil. Crude oil may experience a short-term decline followed by a pullback around the opening time of the European and American markets. Participation is not recommended!"
On Thursday, in the four-hour chart, the C wave of crude oil is oscillating sideways at an extreme position, and there is a high probability of a certain degree of pullback! Pay close attention to the previous support level of 70.00, which is also a key psychological price level.
You can consider taking a light position to go long on crude oil!
TP1: 70.00
TP2: 70.35
GOOD LUCK!
LESS IS MORE!
WTI Oil H4 | Intense bearish momentumWTI oil (USOIL) is rising towards a pullback resistance and could potentially reverse off this level to drop lower.
Sell entry is at 69.58 which is a pullback resistance that aligns with the 38.2% Fibonacci retracement level.
Stop loss is at 70.40 which is a level that sits above the 61.8% Fibonacci retracement and a pullback resistance.
Take profit is at 68.42 which is a multi-swing-low support.
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Bullish on USOIL! Who’s Joining the Ride?Technical Analysis:
Support and Resistance Levels: USOIL is currently trading near $71.50. Immediate support is identified at $68-66, with resistance around $72.75.
Momentum Indicators: The Relative Strength Index (RSI) is neutral at 51.2, indicating balanced momentum. The Moving Average Convergence Divergence (MACD) shows a bearish crossover on the 4-hour chart, suggesting potential downward movement.