Bullish Breakout Signals Extended Upside for WTI Crude
On June 13, 2025, West Texas Intermediate (WTI) crude oil displays robust upside momentum with a key breakout above the pivot level of $71.30. Bullish sentiment dominates the session as both technical indicators and market sentiment align in favor of continued upward movement.
The Relative Strength Index (RSI) indicates building momentum, supporting long positions as traders eye major resistance targets at $75.50 and $77.70. Let’s explore the technical setup and trading strategy for today’s crude oil forecast.
Intraday Technical Setup
- Pivot Point: $71.30
Preferred Scenario:
- Long positions above $71.30
- Targets: $75.50 and $77.70
Alternative Scenario:
- If the price breaks below $71.30:
- Short positions targeting $69.25 and $67.60
RSI Insight:
The RSI continues to trend upward above the neutral 50 line, indicating strength and potential for additional gains.
Price Action and Chart Analysis
After finding strong support near $71.30, crude oil prices began trending higher in a stair-step fashion. Bullish candlestick patterns emerged on H1 and H4 charts, confirming intraday bullish structure. Volume has increased alongside price gains, a signal of confident buying pressure.
The RSI on the 1-hour chart is currently at 62, signaling positive momentum without being overbought. This technical confluence supports the case for extended gains, especially if bulls maintain control above $71.30.
Key Levels to Watch
| Level | Type | Significance |
|---|---|---|
| $77.70 | Resistance | Extended bullish breakout target |
| $75.50 | Resistance | First key upside target |
| $71.30 | Pivot | Bias-defining level |
| $69.25 | Support | Minor pullback zone |
| $67.60 | Support | Major downside risk level |
Fundamental Drivers for Oil Prices
1. OPEC+ Supply Strategy
Recent comments from OPEC+ suggest continued production discipline, which supports prices by limiting supply.
2. U.S. Inventory Drawdowns
The U.S. Energy Information Administration (EIA) reported lower-than-expected crude inventories, indicating strong demand and lower supply in key markets.
3. Geopolitical Risks
Ongoing geopolitical tensions in the Middle East and North Africa regions have added a risk premium to oil prices.
4. Global Economic Sentiment
Improved global GDP projections and industrial demand outlooks are further bolstering bullish oil sentiment.
Trade Setup for June 13, 2025
Bullish Scenario:
- Entry: Above $71.50
- Stop Loss: $70.20
- Target 1: $75.50
- Target 2: $77.70
- Risk-Reward Ratio: 1:2.5
Bearish Scenario:
- Entry: Below $71.20
- Stop Loss: $72.00
- Target 1: $69.25
- Target 2: $67.60
- Risk-Reward Ratio: 1:2
Frequently Asked Questions (FAQs)
Q1: What is today’s pivot level for WTI crude oil?
A1: The key pivot level is $71.30.
Q2: Is the outlook for oil bullish or bearish?
A2: The current outlook is bullish as long as the price stays above $71.30.
Q3: What are the resistance targets for crude oil?
A3: Major resistance levels are $75.50 and $77.70.
Q4: What supports the bullish bias?
A4: Rising RSI, bullish price action, and strong demand fundamentals.
Q5: What happens if oil falls below $71.30?
A5: A break below this level could open downside targets at $69.25 and $67.60.
Q6: How reliable is the RSI indicator for oil trading?
A6: RSI is a commonly used momentum indicator and works well when combined with pivot analysis.
Q7: What fundamental news is affecting oil today?
A7: OPEC+ comments, inventory data, and geopolitical risks are key drivers.
Q8: Is WTI overbought now?
A8: No, the RSI is bullish but not yet overbought.
Q9: What chart patterns support today’s trade setup?
A9: Bullish engulfing and continuation patterns on intraday charts.
Q10: What should traders watch next week?
A10: EIA inventory updates and global macroeconomic data releases.
Disclaimer
This analysis is provided for informational and educational purposes only. It does not constitute financial advice or a solicitation to trade any financial instrument. Always do your own research and consult a licensed financial advisor before making trading or investment decisions. Trading commodities involves significant risk and may result in financial loss.
