Crude Oil Technical Analysis April 10, 2025
Current Price Levels and Technical Indicators:
As of 8:00 AM GMT on April 10, 2025, West Texas Intermediate (WTI) crude oil is trading at approximately $60.95 per barrel. The Relative Strength Index (RSI) is at 50.44, indicating neutral momentum. The Moving Average Convergence Divergence (MACD) shows a value of 0.44, suggesting a potential buy signal. The Average Directional Index (ADX) stands at 28.75, reflecting a moderately strong trend. Additionally, the Commodity Channel Index (CCI) is at -185.06, which may indicate an oversold condition.
Support and Resistance Levels:
Immediate support for WTI crude oil is observed at $60.00 per barrel. If the price falls below this level, the next support is around $58.00. On the upside, resistance is identified at $63.00 per barrel, with a more significant barrier near $65.00. The 50-day Exponential Moving Average (EMA) is positioned at $63.75, aligning closely with the initial resistance level.
Fundamental Factors:
Several fundamental factors are currently influencing crude oil prices:
U.S.-China Trade Tensions: The escalation of the trade war between the United States and China has led to increased tariffs, with the U.S. raising tariffs on Chinese goods to 125%, and China responding with an 84% tariff on U.S. imports. These developments have heightened concerns about global economic growth and, consequently, oil demand.
U.S. Crude Inventories: Recent data indicates a notable increase in U.S. crude oil inventories by 2.6 million barrels, suggesting a potential oversupply in the market.
Pipeline Disruptions: The temporary shutdown of the Keystone pipeline due to a spill in North Dakota has constrained supply to some extent, providing short-term support to prices.
Conclusion:
WTI crude oil is currently trading near key support levels, with technical indicators presenting mixed signals. The neutral RSI and moderately strong ADX suggest a consolidation phase, while the MACD and CCI indicate potential buying opportunities. Fundamental factors, particularly the escalating U.S.-China trade tensions and rising U.S. crude inventories, are exerting downward pressure on prices. Conversely, supply constraints from pipeline disruptions may offer temporary support. Traders should closely monitor developments in trade negotiations and inventory reports, as these will likely have significant impacts on price movements in the near term.