West Texas Intermediate (WTI) crude oil traded lower on Tuesday as markets reacted to the latest OPEC+ decision to pause planned output increases, with persistent oversupply worries limiting upside momentum.
At the time of writing, WTI hovered around $60.20 per barrel, recovering slightly after dipping to $59.79 earlier in the session, down about 1.10% on the day.
A firmer US Dollar (USD) added further pressure on oil prices, as a stronger Greenback typically makes dollar-denominated commodities more expensive for non-US buyers. The US Dollar Index (DXY) held near 100.08 its highest level since early August reflecting sustained confidence in the currency amid fading expectations of additional Federal Reserve rate cuts this year.
Technical outlook: bearish bias holds below key moving averages
From a technical standpoint, WTI remains under pressure, maintaining a bearish bias as prices stay below both the 50-day and 100-day Simple Moving Averages (SMAs). A failed attempt to hold above the $61.50–$62.00 zone now a strong resistance area underscores persistent selling interest. This region also coincides with the 50-day SMA, reinforcing it as a critical short-term ceiling for any recovery attempt.
On the downside, immediate support lies near the 21-day SMA at $59.65, which has helped stabilize prices in recent sessions. A decisive break below this level could trigger renewed selling, exposing the October 22 low around $57.31 and the next key support near $56.00.
A daily close below the latter would confirm a continuation of the bearish trend, potentially opening the door for deeper losses toward the mid-$50s.
To shift the outlook to neutral, WTI would need to close above the $61.50–$62.00 resistance band, though even then, the 100-day SMA near $63.65 remains a major barrier that bulls must overcome to regain control.
Meanwhile, the Fixed Range Volume Profile indicates heavy trading activity between $60.00 and $62.50, suggesting strong supply pressure within that range. The Relative Strength Index (RSI) hovers around 47, signaling neutral-to-bearish momentum consistent with a consolidating downtrend.
