Friday’s comments from President Trump about the potential introduction of 100% tariffs on trade with China pushed WTI crude oil below the $60 level for the first time in four months. The bearish sentiment stemmed from fears of a global economic slowdown amid escalating trade tensions between the world’s two largest economies.
The decline was further supported by news of peace efforts in the Middle East, which reduced the impact of geopolitical risk on oil prices.
As the XTI/USD chart shows, WTI is currently trading below $60. How might the situation unfold next?
Technical Analysis of the XTI/USD Chart
In the long-term view, oil price movements (following the flare-up in the Middle East in June) have formed a descending channel shown in red — notably, the current price has fallen below its lower boundary.
In the shorter term, we can observe an acceleration of the decline, emphasised by the purple trajectory lines.
These observations suggest that selling pressure remains dominant, while any recovery attempts are likely to meet resistance near:
→ the psychological level of $60;
→ the lower boundary of the red channel;
→ the purple median line.
Given that the White House is reportedly in favour of lower oil prices (as a means of stimulating the US economy and exerting pressure on geopolitical rivals), WTI crude could drift towards the year’s low around $55.
However, from the demand-side perspective, it cannot be ruled out that the oil market, known for its false breakouts above previous highs (A, B, C), may repeat a similar move above peak D — a pattern that, in Smart Money Concept terms, would represent a liquidity grab.
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