Crude Oil Futures are experiencing strong selling pressure, reflecting a clear shift in order flow. A rejection from intraday highs indicates that sellers have taken control of the market.
After reaching an intraday peak around 02:08, order flow showed bearish trends, with a reduction in buying interest. Key levels have been crossed, including the Value Area Low, POC, and VWAP signals for lower prices.
Key Levels And Profit Taking
Current key levels for potential profit-taking include 60.18, 59.59, 58.40-58.20, 57.40, and 55.42. The bearish trend persists until buyers emerge at lower levels or the price reclaims the value area.
The article outlines a noticeable change in the short-term direction of crude oil futures—a decisive drop in demand came shortly after hitting a high earlier in the session. Following the peak at 02:08, traders began pulling back from aggressive buying. As that eased off, downward momentum picked up rapidly. What followed was a swift move through several price levels commonly used as points of buying interest, such as the Point of Control and Volume Weighted Average Price—both of which often serve as balance zones within a session. The fact that those levels gave way without slowing the decline supports the view that sellers currently have the upper hand.
This kind of move is often interpreted as a direct shift from accumulation to distribution, and that’s exactly what we’ve seen here. When market price fails to hold around the POC or VWAP, it’s often because heavier participants are choosing to reduce long exposure rather than add to it. Once that dynamic sets in, it tends to sustain itself for a while—at least until something shifts materially in terms of volume, speed or order intensity.
For now, those operating in derivatives need to remove the guesswork around sentiment. The evidence on the tape leans toward continued pressure, and it’s reasonable to respond accordingly. We may see some buyers step in closer to those lower levels already marked out, such as the 58.40–58.20 zone, or further still near 55.42. But until activity around those areas shows clear, structured bidding, this isn’t the time to second-guess the dominant current.
Market Sentiment And Strategy
The idea isn’t to predict where the next reversal begins but to watch how price behaves around areas where that could plausibly happen. What we’re doing here is more about responding than anticipating. That’s why moving too early can expose the position to further drawdown—particularly in a market showing directional commitment such as this one.
It’s also worth pointing out that retracements that don’t reclaim broken value zones—like the one formed around the previous session’s POC—tend to be short-lived. For us, nothing changes until there’s full regain of the rejected area with acceptance in volume and structure.
In this mode, strategies that lean on fade setups or wide stops are less appropriate. Instead, rotation-based approaches around intraday supply zones and lower value areas would make more sense. Stop placement should consider where actual invalidation would occur, not merely noise or pullback risk.
Unwinding continues until measurable support reappears—not assumed interest, but clear pressure pushing back at the offer. Until that shows up, direction remains as it is.
