Bulls Remain Patient as the Market Stabilizes, Uptrend Likely to Continue

Summary:

International oil prices have experienced a “roller-coaster” ride, but the downside may remain limited amid a persistent supply-demand gap.

BUY WTI

EXP

TRADING

89.485

Entry Price

107.500

81.000

88.699 -3.700 -4.00%

0.0

Pips

Flat

81.000

Exit Price

89.485

Entry Price

107.500

Fundamentals

Recently, the global crude oil market has undergone a sharp “roller-coaster” move. International oil prices, which had previously surged due to escalating geopolitical tensions in the Middle East, suddenly reversed lower. Both WTI crude oil futures and Brent crude futures experienced steep pullbacks from their highs, with cumulative declines exceeding 15% from the May 18 peak.

In the short term, developments surrounding Middle East geopolitics remain the primary driver of international oil prices. At present, the global oil market is facing a cliff-like contraction in supply, while inventories continue to decline and demand destruction remains relatively limited. The imbalance between supply and demand is becoming increasingly pronounced. Strong underlying fundamentals continue to provide solid medium- to long-term support for oil prices, suggesting that downside pressure may remain limited in the near term. Investors should continue monitoring geopolitical developments in the Middle East, particularly the navigational situation around the Strait of Hormuz.

Bulls Remain Patient as the Market Stabilizes, Uptrend Likely to Continue_1

Technical Analysis

WTI crude oil once again fell below the $90.00 level on Wednesday, while the broader structure continues to reflect a well-defined range-bound consolidation pattern.

From a short-term perspective, price action remains trapped within a “double-layered” consolidation structure composed of both a symmetrical triangle and a rectangular range, indicating that the market is still lacking a decisive directional breakout on the higher timeframe. Previously, oil prices faced strong rejection near the critical resistance zone around $105.00 and are now accelerating toward a key confluence support area formed by the lower boundary of the triangle and the bottom of the rectangle.

Bullish Scenario: If prices can successfully stabilize within the current confluence support zone, WTI may regain upward momentum and launch another attempt toward the converging resistance near $105.00. As the “bullish ceiling” over recent weeks, this region will be critical in determining whether buyers can regain short-term control of the market.

Bearish Scenario: Traders should remain cautious that a confirmed downside breakout would completely invalidate the current consolidation balance, potentially triggering a broader corrective cycle. In that case, the next major downside defensive zone would likely emerge near $84.00.

Trading Recommendation

Direction: Buy

Entry: 89.00

Target: 107.50

Stop Loss: 81.00

Valid Until: 2026-06-26 23:55

Support: 89.59, 88.83, 85.36

Resistance: 92.73, 95.01, 98.48

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data