Head and Shoulders Pattern Signals Short-Term Downside
🔶 WTI OIL UPDATE
WTI crude oil trades lower during early European session on Tuesday, hovering around the 102.40 USD/barrel region. Oil prices remain under pressure as geopolitical concerns surrounding the Middle East begin to ease after reports that US President Donald Trump has paused a planned military strike against Iran.
The decision reportedly followed diplomatic requests from leaders of Qatar, Saudi Arabia, and the United Arab Emirates, helping reduce immediate supply disruption concerns and softening risk premium flows in crude markets.
📌 Technical Outlook
• Broader market structure remains bullish, as price continues to respect the 1H trendline structure
However:
• Repeated rejection above the 103.00 resistance zone suggests weakening bullish momentum
• Sellers continue defending upper liquidity around 103.00, limiting further upside expansion
• A head and shoulders pattern appears to be forming, signaling a potential bearish correction in the near term
• WTI previously entered overbought territory, increasing probability of short-term downside rotation
Market structure remains bullish in the broader trend, but short-term momentum shows signs of exhaustion.
📊 Personal Bias
At this stage, the market still favors a short-term corrective scenario within the broader bullish structure.
As long as price remains below the 103.00 resistance zone, WTI may continue facing downside pressure toward lower liquidity areas. However, the overall uptrend remains intact while price continues respecting the 1H trendline support.
A clear breakout above 103.00 would invalidate the short-term bearish structure and reopen the path for bullish continuation.
🔻Supply zone Zones
• 103.00
• 104.20
🔺 Demand Zones
• 101.00
• 99.00
Wish you a successful trading day 💰
WTI crude oil trades lower during early European session on Tuesday, hovering around the 102.40 USD/barrel region. Oil prices remain under pressure as geopolitical concerns surrounding the Middle East begin to ease after reports that US President Donald Trump has paused a planned military strike against Iran.
The decision reportedly followed diplomatic requests from leaders of Qatar, Saudi Arabia, and the United Arab Emirates, helping reduce immediate supply disruption concerns and softening risk premium flows in crude markets.
📌 Technical Outlook
• Broader market structure remains bullish, as price continues to respect the 1H trendline structure
However:
• Repeated rejection above the 103.00 resistance zone suggests weakening bullish momentum
• Sellers continue defending upper liquidity around 103.00, limiting further upside expansion
• A head and shoulders pattern appears to be forming, signaling a potential bearish correction in the near term
• WTI previously entered overbought territory, increasing probability of short-term downside rotation
Market structure remains bullish in the broader trend, but short-term momentum shows signs of exhaustion.
📊 Personal Bias
At this stage, the market still favors a short-term corrective scenario within the broader bullish structure.
As long as price remains below the 103.00 resistance zone, WTI may continue facing downside pressure toward lower liquidity areas. However, the overall uptrend remains intact while price continues respecting the 1H trendline support.
A clear breakout above 103.00 would invalidate the short-term bearish structure and reopen the path for bullish continuation.
🔻Supply zone Zones
• 103.00
• 104.20
🔺 Demand Zones
• 101.00
• 99.00
Wish you a successful trading day 💰
Trade active
WTI Update:Price continues to hold within the trendline structure.
Trade closed: target reached
Complete the original plan 
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.