Light Crude Oil Futures for July 25, 2025, are priced at $66.28. A key bearish level is $66.38, while bullish opportunities appear above $66.62, depending on sustained movement. Bearish targets include $66.23, near today’s Value Area Low, and $65.31, above the Point of Control from July 23. Bullish targets could reach $67.47 if prices stay above $66.62 for two 30-minute periods or continuously for 15 minutes.

Key Levels in Volume Profile Analysis

Important levels such as Value Area High, Low, VWAP, and Point of Control come from volume profile analysis. These areas often influence price direction and reversal points. Knowing these helps traders enter and exit trades intentionally. The tradeCompass system recommends making no more than one trade in each direction daily. It encourages taking partial profits and adjusting stop-loss orders as trades evolve. Following these guidelines can help reduce risk. Volume profile tools like POC, VAH/VAL, and VWAP highlight where market interest lies. They assist traders in identifying possible reversals or accelerations.

Framework Context and Market Dynamics

This analysis is part of the tradeCompass framework and serves as a guideline, not financial advice. Trading futures and leveraged instruments carries risk—only use money you can afford to lose. Currently, the market is confirming a bearish trend, as prices struggle below the $66.38 threshold. This technical weakness aligns with a recent Energy Information Administration (EIA) report showing an unexpected increase in U.S. crude inventories of 3.6 million barrels. This rise in supply adds downward pressure on prices, making short targets more appealing. Concerns also arise from recent comments by OPEC+ delegates suggesting they may reverse production cuts sooner if demand drops. On the demand side, China’s latest manufacturing PMI is at 49.5, indicating a contraction and a decrease in fuel appetite from the world’s largest oil importer. These fundamental issues strengthen the bearish price targets highlighted in the analysis. For derivative traders, considering short futures positions or buying put options seems wise in the upcoming weeks. It’s vital to watch for a potential reversal if prices rise above $66.62, as ongoing geopolitical tensions can lead to sudden price spikes. This highlights the importance of following profit-taking and stop-loss management strategies from the tradeCompass system. Historically, the mid-$60s range has been critical for oil prices, often serving as a support level before further declines. The last significant drop below this area happened in early 2023 and led to a decline toward the low $60s due to recession fears. With the Federal Reserve indicating a “higher for longer” interest rate approach, similar economic challenges could push prices to the final target of $65.31. Create your live VT Markets account and start trading now.

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