Crude Oil Technical Analysis April 8, 2025
Current Price Levels and Technical Indicators:
As of 8:00 AM GMT on April 8, 2025, West Texas Intermediate (WTI) crude oil is trading at approximately $60.56 per barrel.
Technical indicators suggest a bearish momentum:
Relative Strength Index (RSI): The RSI is at 23.77, indicating that crude oil is in oversold territory.
Moving Averages:
50-day Simple Moving Average (SMA): Positioned at $64.48, indicating a resistance level.
200-day SMA: Located around $68.82, serving as a longer-term resistance level.
Support and Resistance Levels:
Key levels to monitor:
Support:
$58.95: Immediate support level, representing the recent low.
$55.00: Psychological support level, which could be tested if the price continues to decline.
Resistance:
$62.00: Immediate resistance level.
$64.48: Aligns with the 50-day SMA, acting as a significant resistance point.
Fundamental Factors:
Several factors are influencing crude oil prices:
Escalating Trade Tensions: The U.S. administration’s implementation of broad tariffs on imports from major trading partners, including China and the European Union, has intensified fears of a global recession, leading to a decrease in oil demand expectations.
OPEC+ Production Decisions: The Organization of the Petroleum Exporting Countries (OPEC) and its allies have unexpectedly decided to expedite the rollback of production cuts, contributing to an increased supply in the market and exerting downward pressure on prices.
Market Volatility: Global financial markets have experienced significant fluctuations due to ongoing trade disputes and economic uncertainties, impacting investor sentiment and influencing commodity prices, including crude oil.
Conclusion:
Crude oil is currently trading around $60.56 per barrel, with technical indicators pointing to a bearish momentum. Immediate support is at $58.95, while resistance levels are identified at $62.00 and $64.48. Fundamental factors, such as escalating trade tensions and OPEC+ production decisions, are contributing to the current price dynamics. Traders should closely monitor these developments, as they are likely to influence crude oil prices in the near term.