Crude oil prices extended their retreat on Tuesday, dropping to a session low of $62.31 as traders took profits following last week’s breakout. Despite the near-term weakness, the broader technical picture remains constructive, with price action showing signs of a healthy retest within a larger bullish reversal setup.
Key Support Zone Retested
The decline brought crude back into a key $61.84–$62.31 support range a zone that has repeatedly acted as a floor in recent sessions. This area coincides with the former resistance of a falling wedge pattern, which recently gave way to an upside breakout above both the 20-day and 50-day moving averages. The latest pullback represents a return to that breakout zone, a common behaviour as markets consolidate gains before resuming their trend.
A sustained defence of $61.84 would reinforce the bullish structure and maintain the validity of the wedge breakout. Conversely, a decisive close below this level could expose deeper retracement targets near $60.66, where the 78.6% Fibonacci level adds confluence. For now, the market’s ability to hold this band will determine whether crude resumes its uptrend or enters a corrective phase.
Upside Bias Remains Intact
As long as buyers defend the support, the technical bias stays upward. The recent high at $66.77 represents the next key pivot — a close above it would confirm a higher swing high and strengthen bullish momentum. A move through this barrier could bring the 200-day moving average at $67.21 into focus, followed by additional Fibonacci resistance zones if buying accelerates.
Short-term momentum remains neutral, but underlying demand trends continue to improve, supported by the series of higher lows formed since early September.
Weekly Chart Strengthens the Case
From a broader perspective, last week’s $65.72 high aligned closely with the 20-week moving average, a level that has repeatedly capped upside attempts since August. A weekly close above this dynamic resistance would mark a meaningful shift in market structure, signalling that buyers are regaining control of the medium-term trend.
Until that breakout is confirmed, the overall setup suggests the current weakness is corrective rather than bearish. The wedge formation, combined with the higher swing structure, implies growing accumulation interest with momentum likely to build once price action confirms above $66.77.
In summary, the $61.84–$62.31 zone remains the key battleground. A successful defence here could reignite bullish momentum toward $67.21, while a failure below would delay the uptrend and invite further testing of deeper supports.
