After IEA Reports, WTI Softens While Lacking in Upward Momentum

After IEA Reports, WTI Softens While Lacking in Upward Momentum

USDWTI Price Analysis – January 16

WTI (oil futures) is changing intraday while trading moderately from Europe into the American trading session, recently meeting fresh supplies after the International Energy Agency (IEA) released a bearish monthly report on the oil market thrashing investors’ bias.

Key Levels
Resistance Levels: $ 63.04, $ 60.34, $ 58.70
Support Levels: $ 57.40, $ 56.78, $ 55.00

USDWTI Long term Trend: Ranging

The recent data released had a muted impact on WTI oil, but the decline in WTI from the level of 65.62 continues and still reaches the low at 57.40 level.

The trend remains unchanged and the plunge is viewed as part of the sideways trading, which began from the level at 66.49. As long as the resistance level of 60.34 holds, we anticipate a further plunge to the support level of 50.64.

USDWTI Short term Trend: Bearish

In the short term, WTI crude oil rebounded on Thursday after an unsuccessful attempt to clear the horizontal support zone on the level at $ 57.40. The initial reversal signal is generated on the 4-hour time frame after the price action of the last two days ended with a successive advance.

The new preliminary test of the initial resistance level at $ 58.70, while the lowest requirement for confirming the reversal is expansion through horizontal barriers on the level at $ 60.34 and ( both psychological zone at $ 65.62 / $ 57.40). The failure to break may signal a prolonged consolidation and may remain vulnerable to a downward movement, while a break beneath may lead to a negative signal.

Instrument: USDWTI
Order: Buy
Entry price: $ 58.00
Stop: $ 57.40
Target: $ 61.40

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.