Oil Faces Make-or-Break Moment at Uptrend Line
Date: 11 July 2025
Overview
The article discusses the current technical analysis of WTI Oil, which is nearing a pivotal moment as it approaches a significant uptrend line. This trend line has acted as a dynamic support level for several months, and its importance is heightened by its role as the lower boundary of a flag formation.
Technical Analysis
The price of oil is currently exerting pressure on the black uptrend line. This trend line is not just a simple support level; it is part of a flag formation that typically indicates bearish continuation after a preceding downward movement. The implication is that the price is more likely to break downward, continuing the bearish trend.
Potential Outcomes
If the price breaks below the black trendline, the next target for traders would be the green horizontal support level. This level has previously served as a floor during earlier sell-offs. A full daily candle close below this green support would signal a significant long-term sell signal for oil, indicating that the market may be poised for a new downward leg.
Current Situation
As of now, the price is heavily leaning into the black uptrend line, and the outcome of this battle is crucial. Should the support give way, it could lead to a rapid shift in momentum favoring sellers, potentially resulting in a significant decline in oil prices.