US Oil prices consolidating after correction, hinting at bullish breakout supported by technicals

The NA session starts quietly with subdued volumes as US traders take the day off, following last week’s upside surprise and fresh diplomatic updates. US Oil has been consolidating in a narrow range, hinting at a potential bullish breakout. The pullback remains orderly, with upcoming catalysts favoring upside momentum.

US Oil prices are consolidating between 50 and 200-day moving averages after a correction due to Middle East tensions. Buyers are using an upward trendline to push prices higher amid a less dim global trade outlook. A breakout occurred after two weeks of consolidation, reaching highs of $68.34 post US-Vietnam trade deal and Iran’s non-cooperation with UN Nuclear supervision.

Momentum remains calm with RSI neutral on 4H and Daily timeframes. The confluence of 4H 50 and 200 MAs with the Upward Trendline from 2025 lows may lift prices further. Support zones include $66.50, $65, and $63, while resistance zones range from $70 to $76. Buyers must maintain control to avoid handing power back to sellers.

Read more at Investing.com: Oil Price Retreats but Bullish Technicals Suggest Upside Ahead