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Chart the Market (06/06/2025)

Published: 6 June 2025,08:45

Published: 6 June 2025,08:45

Chart The Market

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USOIL, H4: 

WTI crude oil continues to trade within a consolidative structure, hovering just below the $63.90 resistance level after failing to break higher in recent sessions. Price action remains supported above $62.00, but repeated rejections from the upper bound of the range have introduced growing technical uncertainty. This rangebound behavior follows a breakout from a descending triangle pattern, which has so far failed to trigger sustained bullish momentum.

Momentum indicators are offering conflicting cues. The Relative Strength Index (RSI) hovers just above the 50 mark at 54, indicating mild bullish bias, yet shows a flattening profile that reflects waning buying conviction. Meanwhile, the MACD has begun to roll over, with the MACD line slipping below the signal line. This bearish crossover—occurring even as prices hold near recent highs—suggests a divergence that could preempt downside risks. 

From a structural standpoint, crude oil faces a critical test. A confirmed break above $63.90 could reignite bullish interest and open the door toward the next resistance at $65.30. However, failure to sustain momentum here increases the likelihood of a pullback toward initial support at $62.00, with a deeper decline potentially targeting the key zone around $60.30. Price behavior in the coming sessions will determine whether bulls can reassert control or if bearish divergence signals the start of a broader correction.

Resistance Levels: 63.90, 65.30

Support Levels: 62.00, 60.30

Nasdaq, H4

The Nasdaq Composite is navigating a key inflection point after rejecting resistance near 22,000, with Thursday’s 0.86% drop pulling the index back toward the confluence of ascending trendline support and the 21,500 horizontal zone. While price action remains technically constructive in the medium term, short-term momentum is showing early signs of fatigue.

The index has maintained a consistent uptrend since early April, supported by a steep ascending trendline. Multiple consolidation zones show that bulls have defended higher lows, but recent rejection near the May highs and a lower daily close suggest increasing overhead pressure. The key support to watch lies near 21,500—both the trendline and former resistance-turned-support. A break below this zone may open downside risk toward 21,000.

The Relative Strength Index (RSI) has cooled to 58. The RSI has been diverging mildly from price action—failing to make new highs while price has—indicating waning bullish momentum. A sustained drop below 50 could confirm a deeper pullback phase.

MACD is losing upward momentum, with the signal line crossing below the MACD line, signaling a potential bearish crossover. The histogram has turned negative, reinforcing that upside momentum is fading. However, MACD remains in positive territory overall, suggesting the broader trend is not yet reversing.

Resistance Levels: 22,200.00, 23,550.00

Support Levels: 21,000.00, 20,180.00

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