WTI Crude Oil Analysis: Potential Corrective Rebound on the Horizon

The three-month downtrend phase of WTI crude oil from January 2025 has hit a major range support at US$65.40/barrel but may be poised for a turnaround.

China’s upcoming expansionary policies to boost domestic consumption could counteract recent oil price weakness caused by geopolitical issues and US trade tariffs.

Technical analysis indicates a potential medium-term rebound for WTI crude oil, with a target of retesting the key 200-day moving average at US$73.50/barrel.

After a failed breakout earlier in 2025, West Texas Oil CFD has been in a medium-term downtrend, dropping 19% to US$65.40 per barrel by March 5.

Geopolitical factors like the potential peace deal between Ukraine and Russia and OPEC+ output hikes have contributed to the recent sluggishness in oil prices.

The downtrend of West Texas Oil CFD has found support at US$65.40 per barrel, leading to a recent 4.7% rally from March 11 to March 17.

China’s Expansionary Policies to Boost Oil Prices

China’s push for more fiscal policies to increase domestic consumption could help stabilize oil prices amid global uncertainties.

The State Council’s plan to jumpstart consumer spending, coupled with Premier Li Qiang’s focus on consumption during the National People’s Congress, shows a shift towards boosting the economy.

MACD Trend Indicator Signals Bullish Reversal

The MACD trend indicator for West Texas Oil CFD has turned bullish, suggesting a potential change in the current downtrend.

A bullish divergence on the MACD Histogram and an impending MACD crossover indicate a possible corrective rebound towards the 200-day moving average at US$73.50.

Key levels to watch are US$65.40 for support and US$69.00 for resistance, with a breakdown below support potentially leading to further downside.

Overall, the analysis points to a potential rebound in WTI crude oil prices, driven by China’s policies and technical indicators signaling a bullish reversal.