Introduction
Crude oil is hovering around $62.30–62.50, finding buying pressure inside of a support zone. After months of steady selling, bulls are starting to find some strength and are looking to push the price back up toward the 50-day SMA. Lets take a deeper look at the technicals and what they are telling us.
Technical Update
The $62.00–62.50 range has been a support multiple times since mid-August. A break below this level would lead the next zone of $56 to come into view. Price remains capped by the 50-day MA at $64.45 and the 200-day MA at $66.90, both sloping downward. Bulls need to push above this level and then the next target is $72.
The RSI sits at 43.85, which is weak but not oversold. The RSI has been moving sideways on the 50 line since June. If price moves into oversold or overbought, then it could be a trade opportunity due to the consolidation we have seen.
Key Levels
| Level | Type | Note |
|---|---|---|
| 66.90 | Resistance | 200-day MA |
| 64.45 | Resistance | 50-day MA, first barrier |
| 62.00–62.50 | Support | Important support zone |
| 56.00 | Support | Major support zone |
Outlook
- Bull Case:
If $62 holds, CL could rebound toward $64.50 and possibly test the 200-day MA near $67. This would require buyers to step in with volume to reverse the current downtrend. - Bear Case:
A breakdown below $62 would likely accelerate selling pressure, targeting $60 first, then $56.00 — the next support zone.
Ending Off
Crude oil is sitting inside a support zone, which bulls need to hold, or the price could fall to $56. A strong rebound here could spark a corrective rally back toward the mid-$60s, but failure to defend support risks a deeper slide into the mid-$50s. For now, the trend remains bearish, with bulls needing to reclaim $64.50+ to shift sentiment.
