Oil Bulls Encounter Major Barrier at $72: Long-Term Trend Still Bearish

In today’s technical analysis, let’s focus on WTI Oil. Over the past two weeks, oil prices have posted gains, indicating a potential bullish reversal. However, despite this short-term upward movement, oil is now facing a crucial resistance level just below $72 per barrel. This resistance, marked by the orange area, is a significant barrier that needs to be overcome for the bullish momentum to continue.

Currently, as long as the price remains below this resistance, the overall sentiment remains bearish from a long-term perspective. This recent upward move appears to be a short-term correction within a broader long-term downtrend. For long-term traders, this could be an opportunity to enter the market in line with the prevailing bearish trend.

Should oil manage to break above the orange resistance, the next significant obstacle would be the red downtrend line, which represents a critical level for reversing the long-term trend. Only a decisive breakout above this red line would signal a genuine long-term buy opportunity. Until both these resistances are breached, the outlook for oil remains bearish, with the recent gains seen as a correction rather than a true reversal of the downtrend.

Source: https://www.axiory.com/analytics/technical-analysis/oil-bulls-encounter-major-barrier-at-72-long-term