Oil prices staged a modest rebound late in the previous trading session, as shown in the attached hourly charts for both Brent and WTI.Brent crude climbed from intraday lows near $59.50 to just above $61.70 by the end of the afternoon, while WTI advanced from around $56.10 to $58.60.
These moves followed a sharp multi-day selloff that pushed both benchmarks to their lowest levels in months.The charts show clear technical signals behind the afternoon rally.
Both Brent and WTI bounced off lower Bollinger Bands, indicating oversold conditions.Short-term moving averages began to turn up as buyers stepped in, though both benchmarks remain well below their 200-period moving averages, which continue to slope downward.This suggests that the broader trend stays negative, but short-term traders capitalized on the steep decline for a technical rebound.
Trading volume increased during the afternoon rally, suggesting active participation from speculative accounts seeking to profit from the volatility.Crude Rebounds: Brent and WTI Rally from Multi-Month Lows as May Trading Begins.
(Photo Internet reproduction)However, the market did not break above key resistance levels.
For Brent, resistance sits near $62.50, and for WTI, near $59.40.
Both benchmarks face heavy selling pressure at these levels, as indicated by previous price action and the positioning of longer-term moving averages.Oil Market Rebound Driven by TechnicalsFundamental drivers remain unchanged.
Concerns about weak demand from the United States and China, ongoing trade tensions, and expectations of higher OPEC+ output continue to weigh on sentiment.The rebound appears technical rather than driven by any shift in fundamentals.
Market participants remain cautious, with the broader outlook still shaped by oversupply risks and economic uncertainty.This afternoon rally highlights the volatility in oil markets and the tendency for sharp price movements after extended declines.
While prices recovered some ground, the overall market structure remains fragile.Traders continue to watch for fresh signals from economic data and OPEC+ policy meetings.
The charts reflect a market searching for a bottom, but facing strong headwinds from both the supply and demand sides.