WTI crude oil is currently trading around $58.6 after a steady bearish move from the $67 level, entering a key demand zone that could determine the next market direction.
🟩 Demand Zone
A strong demand zone lies between $57 and $59, which previously triggered a powerful bullish rally back in May. Considering the current candle reactions and lower wicks, a potential rebound from this area seems likely.
This zone represents the last accumulation area before a major price rally, indicating active buy orders.
🟥 Supply Zones
Two main supply zones are highlighted on the chart:
$66–67: A short-term supply zone where price previously rejected during the last upward attempt.
$78–81: The major long-term supply zone, marking the broader market top where sellers are expected to return if price rallies strongly.
Market Structure
The overall market remains in a corrective bearish phase, but:
A Break of Structure (BOS) has not yet occurred. A confirmed bullish shift requires a breakout above $61.70.
With price positioned in the demand zone and potential bullish divergence visible on lower timeframes, a short-term correction or reversal could be forming.
Read more about WTI Analysis
Possible Scenarios
✅ Bullish Scenario (Primary)
If price holds above the green zone and forms a strong bullish candle, the next target would be $61.70. A breakout above this level could break the bearish structure and open the path toward $66.
❌ Bearish Scenario (If Support Breaks)
If a daily candle closes below $57, the current support would be invalidated, and price could decline further toward $54.50.
Summary
At the moment, WTI crude oil stands at a critical level:
- Overall trend: Bearish
- Current zone: Strong demand (high rebound potential)
- Trend confirmation level: Break above $61.70
- Next resistances: $66 and $80
As long as price remains above the green demand area, the bullish reversal scenario remains more likely.
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