Crude Oil Analysis: Bullish Reversal Pattern at Key Support Level

Market Overview

Crude oil prices have recently formed a Morning Star candlestick pattern on the 1.13 support level, signaling a potential bullish reversal. This formation comes after a prolonged period of price weakness, during which oil has traded at relatively low levels compared to historical averages. The recent pattern suggests that buyers may be stepping in to defend key support, potentially setting the stage for a rebound.

Technical Analysis: Morning Star at 1.13 Support

📈 Key Observations:
✅ Morning Star pattern on the daily chart – a well-known bullish reversal signal.
✅ Support level at 1.13 holding firm – a critical level where buyers have historically entered.
✅ Potential for upside continuation – if price confirms above the pattern’s high.

The Morning Star is a three-candle formation that typically signals the end of a downtrend. It consists of:
1️⃣ A strong bearish candle, indicating selling pressure.
2️⃣ A small-bodied candle (indecision), where selling slows down.
3️⃣ A strong bullish candle, confirming the shift in momentum.

This pattern gains more significance when it occurs at a key support level—in this case, 1.13, a price zone that has previously acted as a demand area for oil.

Attached: A daily chart of crude oil, highlighting the Morning Star pattern and support level.

Crude Oil Outlook for 2025

Oil prices have remained relatively low over the past year due to a combination of factors, including slower global demand growth, supply adjustments from OPEC+, and economic uncertainty. However, several leading analysts forecast a potential price recovery by late 2025, driven by:

🔹 Supply-side constraints – OPEC+ production cuts could support higher prices.
🔹 Rising global energy demand – particularly from emerging markets.
🔹 Geopolitical risks – continued tensions in key oil-producing regions.

Analysts from Goldman Sachs and JP Morgan expect crude oil to trade within the $85-$100 range by the end of 2025, assuming global demand stabilizes and OPEC+ maintains its current strategy. However, downside risks include economic slowdowns and alternative energy developments reducing long-term oil dependency.

Legal Disclaimer

This analysis is for informational and educational purposes only and should not be considered financial, investment, or trading advice. The author is not a licensed financial advisor, investment manager, or portfolio manager, and the information presented does not constitute a recommendation to buy, sell, or hold any security or commodity.

Investing in crude oil and related assets involves significant risk, including price volatility, geopolitical uncertainties, and macroeconomic factors that can lead to substantial capital loss. Readers should conduct their own research and seek advice from a qualified financial professional before making any investment decisions. The views expressed are based on publicly available information and technical indicators at the time of writing and may change without notice.