WTI Crude Oil Breaks Key Support, Extends Bearish Momentum Amid Global Demand Fears

Key Technical Highlights:

  • Support Break:
    Price has broken below the long-term $65–$66 support zone, triggering a sharp selloff. This support had held for years, so breaking it is a significant bearish signal.

  • Chart Pattern:
    A triangle pattern was violated (red-dotted trendline), confirming bearish continuation and amplifying downside risk.

  • Moving Averages:

    • 50-day SMA < 200-day SMA → Bearish alignment

    • Confirms that the macro trend remains negative

  • Oversold Conditions:

    • Momentum indicators (likely RSI, Stochastics) are in oversold territory, suggesting potential for a short-term rebound or consolidation.


Fundamental Backdrop:

  • Demand Concerns:
    Intensifying global trade tensions have raised fears of a recession, which could severely dent energy demand.

  • Price Action:
    Crude has now fallen to levels not seen in nearly four years, adding to panic-driven selling pressure.

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Ana

Cross-Asset Analyst & Trainer

Varun Sharma

Senior Strategist

VJ Yadav

FX Strategist

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