Oil is poised to break a key support level 16/12/2025

Selling pressure continues to dominate US crude oil futures, with prices opening today’s session lower near $55.30.

Technical Outlook – 4-Hour Timeframe:

Prices are trading along a descending trendline, reinforcing the bearish bias, while simple moving averages are forming strong resistance levels. This outlook is further supported by clear negative signals from the Relative Strength Index (RSI), reflecting persistent downside momentum.

Accordingly, as long as daily trading remains below the $57.00 resistance level, and more broadly below $57.30, the downward trend remains the most likely scenario, initially targeting $55.85. A confirmed break below this level could accelerate losses toward $55.40.

However, if prices manage to stabilize above $57.30, the bearish scenario would be temporarily invalidated, opening the door for a corrective rebound toward $58.25, followed by $58.70.

Warning: Today, markets await high-impact US economic data, including non-farm payrolls, average earnings, unemployment rates, and preliminary services and manufacturing PMI readings, which may trigger heightened volatility.

Warning: The risk level remains 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: 55.85	R1: 57.30
S2: 55.35	R2: 58.25
S3: 54.45	R3: 58.75