USOIL Technical Update: Crude Approaches Critical Demand Zone as Bears Take Control

USOIL has broken sharply lower on the four-hour timeframe, slicing the previous bullish order block directly from 96.13 to 98.69. This aggressive plunge follows a steady rejection from the descending trend line, shifting local control completely to the bears.

The crude is currently driving deep into a lower bullish order block (OB) demand area spanning 89.85 to 93.34, where a cluster of selling momentum meets the first significant block of buy orders. Price action is actively testing the lower boundaries of this zone as market participants try to determine whether buyers can stall the descent or if sellers will force a breakdown.

For the upside scenario, the commodity needs to establish a firm base within the bullish order block (OB) demand area from 89.85 to 93.34 and initiate a strong reversal. A successful recovery would push the price back up to retest the broken breaker block between 96.13 and 98.69, which now acts as overhead resistance.

Overcoming that barrier would open the path for buyers to challenge the 0.786 Fibonacci level at 104.09 and the bearish order block (OB) supply area located between 104.62 and 106.77.

On the flip side, the downside scenario will unfold if sellers overwhelm the current defense and push the pair conclusively below the 89.85 mark. Such a breakdown would accelerate losses toward the 0.236 Fibonacci level at 86.51, with a major extension targeting the deep-discount zone from 78.97 to 80.92.

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Disclaimer: The chart reflects the analyst's opinion and does not constitute investment advice. Past performance is no guarantee of future returns. Seek independent advice before making decisions.