WTI Crude Oil Bulls Charge Toward $59.30—Can They Break Through?

Oil traders are riding the volatility wave as WTI crude tests critical resistance levels. The $59.30 price point looms large—a make-or-break moment for the current rally.

Behind the scenes: Geopolitical tensions and inventory data are playing tug-of-war with prices. Meanwhile, fossil fuel dinosaurs still think ’peak oil demand’ is a crypto-style conspiracy theory.

Watch the charts: If bulls clear this hurdle, we could see a sprint toward $62. Fail here, and it’s back to the trenches. Either way—someone’s leveraged position is about to get liquidated.

U.S.-China Talks and Fed Outlook

Oil bounced back on Thursday after a big drop the previous day as U.S.-China trade talks provided a short term boost. U.S. Treasury Secretary Scott Bessent will meet with China’s top economic official on May 10 in Switzerland, a critical moment for markets to see if the trade war de-escalates. The outcome of these talks will impact global oil demand as the U.S. and China are the world’s largest oil consumers.

But the Fed’s decision to hold rates steady while warning of rising economic uncertainties capped the gains. A stronger U.S. dollar, boosted by the Fed’s dovish tone, has further pressured oil as it makes dollar denominated commodities like crude more expensive for international buyers.

Technical Levels

From a technical perspective, WTI is testing the 50-hour EMA at $58.59, a short term resistance. Key levels to watch:

• Resistance:

  • $58.61 (50-hour EMA)

  • $59.30 (previous swing high, strong resistance)

• Support:

  • $57.75 (recent demand zone, critical support)

  • $57.10 (next major support)

A break above $58.61 could set up a move to $59.30, a big target for bulls. But a failure to clear this level may retest $57.75 and increase the risk of a deeper pullback.

Trade Setup and Risk Management

For longs, a breakout above $58.61 with volume could be the entry point, targeting $59.30. To limit downside risk, put a tight stop-loss below $58.00 as a drop back to $57.75 could invalidate this setup.