Crude Oil and Natural Gas Technical Analysis: Bearish Trends Persist Amid Trade Tensions

WTI crude oil (CL) prices continue to drop under bearish pressure as the US-China trade tensions intensify. However, WTI crude oil found support around $55 and reversed higher, reaching nearly $63 after the market reacted to the 90-day pause on broader tariffs. Investors expect the conflict to remain confined to the US and China, but the broader economic impact may still unfold.

US President Trump raised tariffs on China to 145%, while China responded with a 125% levy. Despite this escalation, positive signals from US-EU trade talks helped ease market fears. Kevin Hassett’s comments about strong progress with the EU further boosted investor confidence. China remains the world’s largest oil importer. However, due to the ongoing tariff battle, oil demand may decline if its economy slows. Traders remain cautious, knowing that ongoing trade tensions could weaken global energy demand.

WTI Crude Oil (CL) Technical Analysis

Oil Daily Chart – Bearish Pressure

The daily chart for WTI crude oil shows that the price remains under bearish pressure and trades below the long-term support range of $65–$66. The rebound from the oversold region appears weak and suggests a further decline. Moreover, the 50-day SMA remains below the 200-day SMA, indicating strong bearish momentum. Immediate resistance lies in the $64–$65 area, where the price may face selling pressure and continue to decline.

Oil 4-Hour Chart – Descending Broadening Wedge

The 4-hour chart for WTI crude oil shows that the price remains within a descending broadening wedge pattern. The rebound from the wedge support has created uncertainty, with prices fluctuating within a narrow range. These fluctuations suggest a continued bearish bias. A break above $72.50 is needed to negate the bearish pressure in WTI crude oil.

Natural Gas (NG) Technical Analysis

Natural Gas Daily Chart – Ascending Channel

The daily chart for natural gas (NG) shows that the price is forming a cup and handle pattern within an ascending channel. The correction from the $5 resistance pushes the price toward the channel support, located between the $3 and $3.50 area. Moreover, this support aligns with the 200-day SMA, strengthening the zone. A strong rebound is expected once the correction is completed, around $3.

Natural Gas 4-Hour Chart – Ascending Channel

The 4-hour natural gas chart shows that the price has broken below the ascending channel, opening the door for a further decline toward the $3 support level. If the price drops to $3, a rebound from this level is likely. Overall, the trend remains upward despite the break from the ascending channel. The daily chart supports this bullish outlook, where the price structure still indicates further upside.

US Dollar Technical Analysis

US Dollar Daily – Breakdown from 100.65

The daily chart for the US Dollar Index shows that the index has broken below 100.65 and remains under bearish pressure. A slight rebound may develop, but the overall trend remains bearish. Strong support lies in the 96 to 97 region.

US Dollar 4-Hour Chart – Descending Channel

The 4-hour chart for the US Dollar Index shows that the index is trading within a descending channel and is approaching the channel’s support. Due to oversold conditions and support of the descending channel, a rebound may occur. However, the overall trend remains bearish.