U.S. crude oil prices are showing early signs of stabilisation near key technical support, suggesting the recent correction may be corrective rather than trend-reversing.
Key Levels to Watch
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Immediate Support: $58.72 per barrel
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Secondary Support Zone: $58.15 – $58.72
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Immediate Resistance: $59.10
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Major Resistance: $59.63
Prices may consolidate around the $58.72 support level before attempting another move higher to retest resistance at $59.63.
Pattern & Structure Analysis
A high-low bottom formation developing from the December 16, 2025 low at $54.98 has now been largely confirmed. This pattern points to a medium-term upside target near $62, indicating that the broader recovery structure remains intact.
From a wave perspective, the market is extending wave C from $55.77, with its 161.8% Fibonacci projection at $62.01 acting as a key upside objective. The 100% projection level at $59.63 temporarily capped the advance, triggering a modest pullback.
Importantly, this correction appears technically healthy and is likely to remain contained within the $58.15–$58.72 support zone, unless sentiment deteriorates materially.
Breakout Confirmation Signals
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A break above $59.10 would signal renewed bullish momentum and continuation of wave C.
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On the daily chart, U.S. oil has already broken above a falling channel and cleared resistance at $58.12, strengthening the bullish case.
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A duplicated channel projection points to a potential extension toward $63.33, though a more realistic and conservative target stands at $61.64.
This upside scenario would be confirmed on a sustained break above $59.56.
Bottom Line
As long as U.S. oil holds above the $58.15–$58.72 support zone, the technical bias remains constructive, with scope for a renewed advance toward $61–$62 in the near term. Short-term consolidation should be viewed as part of a broader basing and continuation process rather than trend exhaustion.
Disclaimer:
This analysis is for educational purposes only and should not be considered business, financial, or legal advice. Readers should consult qualified professionals before making any trading or investment decisions.
Analysis By-Shahzad Ahmad
