Crude Oil Technical Analysis, 6 June 2025

Technical overview

Support & Resistance

Highlighted Supply Zone

• Price is entering a heavily tested resistance zone (pink shaded region), which has acted as a reversal point multiple times since early 2025.

Momentum & RSI

• RSI (14) = 59.78, now clearly above the 50 threshold (which marks bullish territory).
• Momentum is accelerating upward with no bearish divergence, suggesting legitimate strength in this leg up.
• The RSI is not yet overbought, leaving room for further gains before bulls face exhaustion.

The recent move marks a clear bullish structure of higher lows and higher highs.

Crude oil has broken above the May highs and is forming an ascending base beneath resistance, which is constructive and typical before breakouts.

Trades

Bullish Breakout Trade (if confirmed)

• Trigger: Daily close above $65.00 with strong volume.
• Target 1: $68.90 (R2 zone top)
• Target 2: $73.78 (R3 extension)
• Stop Loss: Below $62.00 (back inside range)
• Risk/Reward: Favorable (2.5:1+), especially if crude confirms a breakout with macro tailwinds (e.g., OPEC cuts or USD weakness)

Rejection Fade Setup (lower probability short)

• Trigger: Rejection candle with long upper wick + bearish RSI reversal under 60.
• Target 1: $60.00 (pivot re-test)
• Target 2: $56.00 (S1)
• Stop Loss: Above $66.00

Macro & Sentiment Backdrop

• The USD remains weak, providing a supportive backdrop.
• Risk appetite across markets (NQ, BTC, and Gold) is high, favoring commodities.
• Crude may face headline risk from geopolitical tensions or inventory data, but price action currently supports accumulation behavior.

Summary Table

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