WTI Oil – Bearish Momentum Stalls Above Daily Ichimoku Cloud

WTI crude edged higher in early Wednesday trading as bears took a breather following a steep two-day decline of roughly 16%.

The sell-off found a temporary floor near the $64.00 area—aligned with the 61.8% Fibonacci retracement of the $55.40 to $77.88 rally and just above the top of the thick daily Ichimoku cloud. Oversold daily conditions also encouraged some profit-taking after the sharp drop.

So far, rebound attempts have been shallow, capped by the broken 100-day moving average at $65.78, which now acts as initial resistance. Further upside barriers lie at $67.25 (23.6% Fibo of $77.88–$63.97), $68.55 (200DMA), and $69.28 (38.2% Fibo), with a break above these levels needed to signal stronger bullish momentum.

However, the broader outlook remains bearish, weighed down by large bearish daily candles, a bearish engulfing pattern, negative daily technicals, and expectations of increased output from OPEC+.

Unless the $64.00 support zone breaks, a period of sideways consolidation is likely. A sustained drop below this key support, however, would reinforce bearish pressure and pave the way for an extended decline from the June 23 high of $77.88.

Res: 65.78; 66.95; 67.25; 68.55
Sup: 64.20; 64.00; 63.69; 62.50