Crude oil rallies right into a key resistance and backs off. What’s subsequent?

Yesterday, following Trump’s tariffs pause announcement, crude oil futures rallied more than 10% before backing off a bit from a key resistance zone.

The consensus is still negative on the market citing Trump’s 125% tariffs hike on China and the fact that all the other countries still get a 10% baseline tariff.

I would take the opposite view because it shows that it’s all about bringing down trade barriers for others. I’m not an economist, but it should be collectively bullish for global growth and therefore for crude oil.

On the 1 hour chart, we can see that the price spiked into the key resistance zone around the 62.00-64.00 range and backed off a bit, which is what generally happens after such strong spikes. We now have a counter-trendline defining the current pullback. The sellers will likely continue to lean on it to keep pushing into new lows, while the buyers will look for a break higher to pile in for a break above the resistance and start targeting the 72.00 handle next.