WTI Crude Oil May Plunge Past the Level at $55 per Barrel

USDWTI Price Analysis – January 23

The recent decline in crude oil prices could lead to a drop in prices to $ 55.00 level. Earlier this week, the EIA predicted that Brent crude prices could be slightly lower by mid-year.

Key Levels
Resistance Levels: $ 63.04, $ 60.34, $ 59.61
Support Levels: $ 55.00, $ 54.00, $ 52.24

USDWTI Long term Trend: Ranging

After the price reached $ 59.61 levels at the start of the week, crude oil prices began to plummet. The support level of 57.40 and 56.78 dollars was broken to start a new bearish wave.

If a break underneath happens past the level of $ 55.00, bears can push the price well underneath the support levels of $ 54.00. In this situation, crude oil prices may even test the support region of $ 52.24.

USDWTI Short term Trend: Bearish

Taking a view at the 4-hour WTIUSD chart, the price even plunged underneath the support region of $ 57.40 level and the moving average (5 and 13). This opened the entryway to more losses and the price broke support for $ 56.78 level.

The fall of the structure took place against the backdrop of the growth of open interest, at the moment leaving the bearish point of view untouched and allowing additional losses, initially towards a low of the end of November at around $54.77.

Instrument: USDWTI
Order: Buy
Entry price: $ 55.00
Stop: $ 54.00
Target: $ 57.40

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