WTI Stays in Red as the Price Drops Further Near $52.00 Level

WTI Stays in Red as the Price Drops Further Near $52.00 Level

USDWTI Price Analysis – January 30

Recent headlines dip out to support recovery in crude oil prices. At the hour of composing, the West Texas Intermediate barrel was trending at $ 52.22 level, erasing 1.45% daily. WTI crude prices plunged mainly due to concerns about the Coronavirus, and the Energy Information Administration (EIA) said that US oil stocks rose more than expected last week.

Key Levels
Resistance Levels: $ 63.04, $ 58.70, $ 54.00
Support Levels: $ 52.05, $ 51.44, $ 50.64

USDWTI Long term Trend: Bearish

Currently, WTI crude is down 0.95% to $ 51.69 level and a breach of $ 51.44 level (Jan 30 low) aims at $ 50.64 level (October 3, 2019, bottom). On the other hand, the next bullish barrier is located at $ 54.35 level (Jan. 29 high), lending at $ 57.40 and then $ 58.70 on attempting to cross the moving average 5 and 13.

However, extended rallying cannot be ruled out before sellers resume the decline, as daily indicators are oversold, but they lack a clearer signal at the moment.

USDWTI Short term Trend: Bearish

Technically, the WTI crude oil price established double bottom support around $52.05 level, and closing of 4-hour candles past this level can help drive the bullish trend in the WTI crude oil.

On the higher side, Oil may find resistance around the level at $54.00 while bearish breakout opens further room for selling until $50.64. The contract holds in red for the second day and is on track to fully retrace brief recovery to ($52.14/$54.35) levels.

Instrument: USDWTI
Order: Sell
Entry price: $ 52.05
Stop: $ 54.00
Target: $ 50.64

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.