WTI crude – bearish momentum pauses as market consolidates ahead of potential renewed downside move
WTI crude oil extended losses on Friday, heading for a third consecutive weekly decline and marking a second straight week of closing below the $60 threshold.
The market remains weighed by a gloomy demand outlook, amplified by the International Energy Agency’s latest forecast highlighting a growing supply surplus. Additional pressure stems from reports of a possible meeting between the US and Russian Presidents and intensifying trade tensions between the United States and China, all contributing to a bearish tone across the energy complex.
WTI prices dropped to a five-month low, now targeting key supports at $55.40 and $55.12 — levels that marked the 2025 lows posted in April and May and formed a notable double bottom ahead of the previous strong rebound.
Daily technical indicators remain firmly bearish; however, oversold conditions, a north-turning 14-day momentum indicator from deep negative territory, and potential end-of-week profit-taking suggest a phase of consolidation or a mild corrective rebound could emerge.
The broken $60 handle has reverted to immediate resistance, strengthened by the descending 10-day moving average. Further barriers align at the broken 76.4% Fibonacci retracement level at $60.71 and the $61.50 zone — a former range floor and higher base reinforced by the 20-day moving average — where any recovery is expected to remain capped, preserving the broader bearish outlook.
Resistance: 58.37; 59.74; 60.00; 60.71
Support: 56.58; 55.40; 55.12; 53.87
