However, uncertainty surrounding US-China trade relations continues to weigh on the outlook. President Trump declared that the trade deal with China is ‘done,’ but no confirmation has come from Beijing. If trade tensions escalate or economic risks from tariffs increase, oil demand expectations may weaken, limiting further upside in WTI prices.
WTI Crude Oil (CL) Technical Analysis
WTI Oil Daily Chart – Resistance of 200-Day SMA
The daily chart for WTI crude oil shows that the price has broken above $66 and reached strong resistance at $69, near the 200-day SMA. After hitting this resistance, the price began correcting lower. The next support lies in the $66 area.
A break above $69 would likely trigger a move toward the $72.50 level. Moreover, a break above $72.50 could push prices toward $73.50, which marks the resistance of the triangle formed by the red-dotted trendlines. However, as long as the price remains below $69, the price may correct towards $66. The negative trend is likely to continue unless a confirmed breakout above $73.50 occurs.