Oil along a steep slope 18/12/2025

US crude oil futures continued their downward trend for the second consecutive session, as we anticipated, reaching a low of $55.10, the lowest level in five years.

Technical Outlook – 4-Hour Timeframe:

The price is moving along a steep downtrend line, reinforcing the bearish trajectory, while the simple moving averages are forming strong resistance levels. Furthermore, the Relative Strength Index (RSI) continues to show clear negative signals.

Therefore, with daily trading remaining below the resistance level of $56.70, the downward trend is the most likely scenario, targeting $55.10 as an initial level. A break below this level would strengthen and accelerate the downward trend, potentially leading to a move towards $54.40.

It’s worth noting that if the price holds above $57.00, it could temporarily reverse the expected trend towards $57.70 and then $58.50.

Alert: Today we await high-impact economic data releases from the US: the annual and monthly core Consumer Price Index (CPI) and weekly jobless claims. From the Eurozone, we anticipate the European Central Bank’s (ECB) press conference, interest rate decisions, and monetary policy statement. From the UK, we await the interest rate decision and monetary policy summary. We may see significant price volatility around the time of these releases.

Alert: The risk level is high amid ongoing trade and geopolitical tensions, and all scenarios remain possible.

Trading in CFDs involves high risk, and therefore all scenarios are subject to potential outcomes. The analysis provided above is not a recommendation to buy or sell but rather an illustrative reading of price action on the chart.

S1: 55.30	R1: 56.95
S2: 54.35	R2: 57.70
S3: 53.60	R3: 58.60