Crude oil prices remained volatile as West Texas Intermediate (WTI) crude tested pivotal support and resistance levels this week. Following a lower swing high of US$71.79 last week, WTI continued its bearish trajectory, dipping to a daily low of US$68.28 on Tuesday. The current price movements reflect ongoing consolidation within a narrowing range.

The resistance zone aligns with the 50-day moving average (MA) at US$71.20, while support sits near US$66.86. A breach below US$66.86 could signal further bearish momentum, potentially retesting the September low of US$65.65, the weakest price since May 2023. A further drop could approach the May 2023 low of US$63.67, tied to the long-term downtrend stemming from the 2008 peak of US$147.08.

Conversely, bullish signals could emerge if prices reclaim the swing high of US$71.79 and surpass the key pivot at US$72.79. Such movements may pave the way for an upside breakout, targeting US$74.60, a critical retracement level, and further resistance at US$76.58 and the 200-day MA at US$77.18.

Oil markets remain influenced by global economic uncertainties, with traders closely monitoring support and resistance zones for indications of trend reversals.

FXEmpire