Crude Oil Technical Analysis April 9, 2025
Current Price Levels and Technical Indicators:
As of 8:00 AM GMT on April 9, 2025, U.S. West Texas Intermediate (WTI) crude oil is trading around $57.12 per barrel, marking a significant decline of approximately 4.13%.
The Relative Strength Index (RSI) has dipped below 30, entering oversold territory, which may indicate a potential reversal or stabilization point. Both the 50-day and 200-day Simple Moving Averages (SMA) are trending downward, reinforcing the bearish momentum in the short to medium term.
Support and Resistance Levels:
Support: Immediate support is identified at $57.00, with additional support near $55.00.
Resistance: Key resistance levels are observed at $60.00 and $62.00.
Fundamental Factors:
The recent sharp decline in oil prices is primarily driven by escalating trade tensions between the U.S. and China. The U.S. has imposed a 104% tariff on Chinese imports, leading to fears of a global economic slowdown and reduced demand for oil.
Additionally, OPEC+ has announced plans to increase output by 411,000 barrels per day in May, contributing to concerns about an oversupplied market.
Analysts warn that if these conditions persist, oil prices could continue to face downward pressure, potentially falling below $40 per barrel in extreme scenarios.
Conclusion:
Crude oil markets are currently under significant bearish pressure due to geopolitical tensions and supply concerns. Traders should monitor support and resistance levels closely, as well as stay informed about developments in trade policies and OPEC+ production decisions, to navigate the volatile market conditions effectively.