USOil (WTI) Continues To Trade Defensively Amid Sustained Supply Dominance

Market Analysis – January 2

USOil continues to trade defensively amid sustained supply dominance. USOil remains aligned with a negative daily structure, characterized by a sequence of lower highs and sustained trading below the short-term moving average near $57.60. Momentum conditions remain subdued, with the MACD holding a bearish configuration and minimal histogram recovery, signaling that upside attempts continue to lack follow-through. This environment underscores persistent seller control, while buyer participation remains limited.

USOil Key Levels

Resistance Levels: $61.500, $66.400, $72.200
Support Levels: $55.200, $52.000, $50.100

USOil Long-Term Trend: Bearish

From a technical standpoint, repeated price reactions into the $60.00–$61.00 zone have failed to generate sustained momentum, confirming this region as a well-established supply area. The market continues to respect a downward-sloping resistance line, while former demand zones have been absorbed without triggering meaningful reversals. The inability to reclaim the $61.50–$62.00 region further highlights ongoing distribution and subdued demand strength.

Looking ahead, a decisive break below the $55.00 threshold would likely open the path toward the $52.00 support area, with scope for further extension toward $50.00 should selling pressure accelerate. Any short-term rebounds are expected to encounter resistance near $58.00 and again around $60.00, keeping recovery attempts contained. Overall, the prevailing technical outlook remains tilted to the downside unless price can secure acceptance above $61.50 on a daily closing basis.

USOil Short-Term Trend: Bearish

USOil remains bearish on the four-hour chart as price continues to respect a descending trendline. The most recent rebound was rejected from a clearly defined supply zone, reflecting strong seller participation and aligning with prevailing forex signals that favor downside continuation.

Price remains below the short-term moving average, reinforcing ongoing downside pressure. A continuation lower appears likely, with attention focused on the prior swing low as the next downside objective.

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