USOil (WTI) Overview Signals Potential Downward Continuation

Market Analysis – January 24

USOil overview signals potential downward continuation. The Relative Strength Index (RSI) on the chart currently hovers near 51, suggesting neutral momentum, with neither buyers nor sellers in control. The RSI’s failure to sustain above 63 indicates that bullish strength is waning. Furthermore, the market appears to have respected the Overbought Zone (OB), marked around $77.30, as a resistance level, causing a price reversal. These indicators collectively point to a bearish bias dominating the broader market sentiment.

USOil Key Levels

Resistance Levels: $78.40, $84.50, $87.60
Support Levels: $72.80, $67.10, $65.30

USOil Long-Term Trend: Bearish

The price action shows a clear rejection from the $78.40 resistance zone, with a bearish order block (OB) forming near $77.30. The inability of the price to break above the prior bullish swing high (BSL) further strengthens the bearish narrative. The market has retraced into the $72.80-$74.40 demand zone, which aligns with a prior order block, indicating a potential short-term support. However, the formation of lower highs and lower lows reinforces the bearish trend.

Given the overall trend, the projection suggests a temporary rebound from the $72.80-$74.40 zone toward $77.30, testing the recent order block resistance. If the price fails to break above this level, it is likely to decline further. A confirmed break below $72.80 could open the doors for USOil to test $67.10, aligning with the longer-term bearish outlook. Traders may consider utilizing forex signals to refine their strategies in this market environment.

USOil Short-Term Trend: Bullish

USOil is currently declining in fractals into the $72.80 demand zone. The RSI shows that USOil is also getting oversold. An invalidation of the diagonal resistance is highly probable as the price approaches the demand zone.

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