The NA session kicks off quietly, with subdued volumes as American traders take the day off, giving markets a breather after the upside surprise in the last week and fresh diplomatic updates from the US.
From a price action perspective, has been consolidating in a narrow $2 range, showing signs it may be gearing up for a bullish breakout.
While the pullback remains orderly, the broader structure still favors the upside, especially if upcoming catalysts align with the underlying momentum.
US Oil Technical Analysis
WTI Daily Chart
Source: TradingView
US Oil prices are contained between its 50 and 200-day moving averages and have been consolidating since the end of the Middle East Tensions led to a significant correction.
One thing to note is that buyers seem to be using the formation of an upward trendline to push prices higher again as the global trade outlook is looking progressively less dim.
WTI 4H Chart
Source: TradingView
The past two weeks of $65 to $67 consolidation led to a breakout on Wednesday 2nd of July – getting to highs of 68.34 after the US-Vietnam trade deal (notably allowing China to manoeuvre more trade) and Iran’s announcement of non-cooperaton with UN Nuclear’s supervision – the price action looks like a healthy pullback from last Wednesday’s small breakout.
Momentum is still very calm, confirmed with the RSI on both the 4H and Daily timeframes hanging around neutral.
One additional element to look is the mix of both the 4H 50 and 200 MAs in confluence with the Upward Trendline from 2025 lows that could be used by buyers to lift prices.
Any failure to do so will give the hand back to sellers.
Levels to check:
Support Zones
- 66.50 4H MA 50, 200 and trendline
- $65 Support Zone
- $63 support at descending channel
Resistance Zones
- $70 Pivot Zone
- Intermediate Resistance $72 to $73
- Main Resistance $75 to $76