The four-hour chart (H4) for the crude oil symbol (#CL) shows price movements that are under the control of a negative and bearish path, as the price is currently trading at 89.74 levels with continued selling pressure following the bounce from the advanced resistance levels and the breach of the pivotal pivot levels to the downside.
Technical reading and price action
Structure of price channels: The price is moving within a main descending channel (in blue) that reflects the general negative trend of the pair, after reaching levels close to the third weekly resistance (Weekly R3) at 104.34 and the second resistance (Weekly R2) at 100.44. In parallel, the price is currently trapped within an accelerating descending sub-channel (pink/red) that is pressuring price movements and limiting any corrective upward attempts.
Interaction with pivot levels: The price witnessed a sharp downward decline that led to breaking the first weekly resistance level (Weekly R1) at 95.84, followed by breaking the Weekly Pivot point located at 91.94. The price is currently below these pivotal levels, trading near the middle line of the secondary channel, which reinforces the hypothesis of continued control for the selling side.
Pivotal support and resistance levels
Main resistance levels:
First resistance: 91.94 level (Weekly Pivot point).
Second resistance: 95.84 level (Weekly R1 resistance level).
Pivotal resistance: 100.44 level (Weekly R2).
Main support levels:
First support: 88.35 - 89.00 levels (near intraday lows areas).
Second support: 87.34 level (Weekly S1 support level).
Main support: 85.80 levels (lower border of the main descending channel).
Price action forecasts and trading recommendations
Bearish scenario (main):
A negative path is considered most likely in the near and medium term as long as the price trades below the weekly pivot point of 91.94 and within the lower borders of the descending channels.
Recommendation: Sell when 91.94 levels are retested and resistance holds, or when the intraday support areas below 89.00 are broken.
Technical objectives: Targeting the first weekly support level at 87.34 as a first target, and extending towards 85.80 when selling momentum increases.
Stop loss: Close of 4-hour candle above 93.45.
Corrective bullish scenario (alternative):
It is activated if the weekly pivot point 91.94 is breached and stabilizes above it with a strong 4-hour candle.
Verification condition: breaching 91.94 and holding above it.
Technical objectives: Starting a positive correction wave targeting the first weekly resistance level at 95.84.
The H1 chart for Crude Oil (#CL) shows trading remaining under a bearish trend. The price is currently trading around the 89.74 level, attempting a short-term recovery after establishing a local low near 88.25; however, upward attempts are running into strong resistance formed by structural pivot levels and descending channels.
Technical Analysis and Price Action
Price Channel Structure: The price is trading within a primary bearish channel (blue) that defines the general path of short-term price movement following the bearish reversal from the Monthly Pivot level at 94.39 and near the third daily resistance level (Daily R3) at 94.27. Concurrently, the price is confined within an accelerated secondary bearish channel (pink/red), which exerts direct pressure on current trading and limits the buyers' ability to generate a significant positive surge.
Interaction with Pivot Levels: Crude Oil experienced a decline that led to the successive breaking of several key levels—most notably the Weekly Pivot at 91.94 and the first daily resistance (Daily R1) at 91.17—culminating in a drop below the Daily Pivot at 89.96. Trading below the Daily Pivot transforms this area into a strong short-term resistance zone, rendering current upward movements merely corrective retests. Pivotal Support and Resistance Levels
Key Resistance Levels:
First Resistance: 89.96 (Daily Pivot).
Second Resistance: 91.17 (Daily R1).
Pivotal Resistance: 91.94 (Weekly Pivot).
Key Support Levels:
First Support: 88.85 – 89.05 (Recent intraday low and channel midline).
Second Support: 88.07 (Daily S1).
Key Support: 87.85 (Lower boundary of the main bearish channel).
Price Action Outlook and Trading Recommendations
Bearish Scenario (Primary):
A bearish trend prevails in the near term as long as the price trades below the Daily Pivot (89.96) and within the bearish pink/blue zone.
Recommendation: Sell upon a retest of the 89.96 level if resistance holds, or upon failure to break above the upper boundary of the minor channel.
Technical Targets: Target the 88.85 area first, followed by an extension toward Daily S1 at 88.07 and the lower boundary at 87.85.
Stop Loss: A one-hour candle close above 91.17.
Corrective Bullish Scenario (Alternative):
Triggered if the price breaks above the Daily Pivot (89.96) and stabilizes there, confirmed by a strong one-hour candle close. Confirmation Condition: A clear breakout above the 89.96 level and an exit from the minor bearish channel.
Technical Targets: Paving the way for a corrective rise targeting the first daily resistance at 91.17; should momentum remain strong, the move could extend toward the weekly pivot at 91.94.
Risk Management
Trading crude oil futures requires strict adherence to risk management rules and the precise setting of stop-loss orders to withstand sharp price volatility, while limiting risk exposure to no more than 1%–2% of capital per trade.