Crude Oil Technical Analysis March 21, 2025
Current Price Levels and Technical Indicators:
As of 5:00 AM GMT on March 21, 2025, US West Texas Intermediate (WTI) crude oil futures are trading around $68.34 per barrel.
Moving Averages: The price is trading above both the 50-day and 200-day simple moving averages (SMAs), reinforcing the current bullish trend.
Relative Strength Index (RSI): The 14-day RSI stands at approximately 65, nearing the overbought threshold of 70, which may suggest a potential short-term price correction.
Support and Resistance Levels:
Based on current technical analysis, the following levels are identified for WTI crude oil:
Resistance Levels:
- R1: $68.61
- R2: $69.00
- R3: $69.50
Support Levels:
- S1: $68.00
- S2: $67.50
- S3: $66.50
A sustained move above $69.00 could signal further bullish momentum, while a decline below $67.50 might indicate a potential reversal.
Fundamental Factors:
Several key factors are influencing crude oil prices:
OPEC+ Production Cuts: OPEC+ has agreed to implement production cuts among several members, aiming to reduce output through 2026. These measures are intended to stabilize global oil markets.
U.S. Sanctions on Iran: New sanctions imposed on Chinese entities involved in supplying Iranian oil may result in a tighter global oil supply as Iran’s exports decrease.
U.S. Crude Oil Inventories: Recent data shows an increase in U.S. crude oil inventories, which could influence supply dynamics and impact global oil prices.
Conclusion:
WTI crude oil prices are currently trading above key moving averages, indicating a bullish market sentiment. However, with the RSI approaching overbought levels, caution is advised as a short-term correction could be forthcoming. Traders should monitor critical support and resistance levels, as well as stay informed on OPEC+ production decisions, U.S. sanctions on Iran, and inventory data, as these factors are likely to influence oil prices in the near term.