Oil Faces Make-or-Break Moment at Uptrend Line

Oil Faces Make-or-Break Moment at Uptrend Line
In today’s technical analysis, we’re taking a close look at WTI Oil, which is approaching a critical technical moment — one that could open the door to a much deeper move lower.

Right now, price is battling around a key black uptrend line, which has held as dynamic support for the past few months. But this isn’t just any trendline — it also serves as the lower boundary of a flag formation, and that context matters.

This flag is forming after a bearish move, which gives it classic bearish continuation characteristics. In other words, the structure is more likely to break to the downside, continuing the trend that preceded it.

Currently, the price is putting visible pressure on the black trendline, and from a technical standpoint, it looks like a breakout to the downside could happen soon. If that break occurs, the next target would be the green horizontal support, a well-defined level that previously acted as a floor during earlier sell-offs.

And if price closes a full daily candle below that green support, that would mark a major long-term sell signal for oil — confirming that the market is ready for a new leg down.

But we’re not there yet. First, the battle is on the black uptrend line, and price is leaning heavily into it. If that support gives way, momentum could shift quickly in favor of sellers.


 
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