USOil (WTI) Signals Early Upside Momentum After Prolonged Consolidation

Market Analysis – January 17

USOil signals early upside momentum after prolonged consolidation. USOil is beginning to show early indications of bullish momentum following an extended phase of sideways price action, with technical conditions supporting a potential upward shift. The short-term moving average has started to slope higher, signaling a change in directional bias, while the MACD has crossed into positive territory with expanding histogram bars, reflecting increasing buying interest. Price volatility has narrowed compared to prior months, a condition that often precedes expansion, and current activity around the $59 level suggests accumulation rather than distribution.

USOil Key Levels

Resistance Levels: $61.450, $66.420, $72.220
Support Levels: $55.150, $52.030, $50.060

USOil Long-Term Trend: Bullish

From a structural perspective, the market has consistently respected a demand zone between $56.00 and $57.50, successfully absorbing multiple downside probes. A sequence of higher lows has developed from this base, and the recent break above the descending trendline that previously capped rallies signals a meaningful structural shift. Immediate resistance is located near $61.45, aligning with prior supply, while sustained acceptance above the $58.90–$59.20 region would confirm support formation and strengthen the bullish case.

Looking ahead, a decisive breakout above $61.45 could open the path toward the $64.00–$66.40 range, where historical price activity points to potential profit-taking. Further upside extension toward $69.60 and $72.20 remains possible if momentum persists and pullbacks stay shallow. Any retracement into the $58.00–$57.00 area is expected to remain corrective rather than trend-reversing, provided price holds above the established demand zone, keeping the medium-term bias constructive.

USOil Short-Term Trend: Bullish

USOil maintains a bullish structure on the four-hour chart following a strong impulsive advance and a subsequent controlled pullback. Price continues to hold above the $58.80–$59.00 support zone, which aligns with prior structure and the 50–61.8% Fibonacci retracement, reinforcing the view of healthy continuation rather than reversal.

The 9-period moving average is acting as dynamic support, while recent candles continue to form higher lows within consolidation. Momentum remains constructive despite a mild MACD cooldown, suggesting that once consolidation resolves, upside potential toward the $61.50–$62.30 resistance zone remains favored in line with prevailing forex signals.

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