WTI Unable to Hold Initial Gains, Losing Upside Momentum Beneath the $60.00 Level

WTI Unable to Hold Initial Gains, Losing Upside Momentum Beneath the $60.00 Level

USDWTI Price Analysis – January 20

Earlier in the session, WTI climbed towards the $ 60 area per barrel after news of supply disruptions in Libya and Iraq. A new decline in prices signals that immediate fears are beginning to fade, as the global oil market remains well provided by oil production and reserves.

Key Levels
Resistance Levels: $ 63.04, $ 60.34, $ 58.70
Support Levels: $ 57.40, $ 56.78, $ 55.00

USDWTI Long term Trend: Ranging

The price returned beneath the initial barrier at $ 58.70 around the horizontal support zone under the moving average of 5 and 13, with daily exit beneath to generate a negative signal and retest the lower horizontal support zone at $ 57.40, which has the recent strong pullback from a new multi-month high on the level at $ 65.62.

The daily technical analysis remained mixed, while the momentum is in negative territory, RSI remains flat, and moving averages record a mixed setting in which there is no clearer direction signal.

USDWTI Short term Trend: Bearish

On the 4-hour time frame at the moment, the barrel of WTI is losing at $58.62 and faces the initial hurdle on the level at $59.61 seconded by the level at $60.34 and finally $65.62 (2020 high Jan.8).
On the other hand, a break beneath the level at $57.40 near term horizontal support zone would aim for $56.78.

On a 4-hour time frame, the WTI barrel is currently losing on the level at $ 58.62, while it’s facing an initial hurdle of $ 59.61 level, accompanied by a level of $ 60.34 and finally, $ 65.62 (January high 2020).
On the other hand, a break beneath the $ 57.40 in the immediate horizontal support zone could lead to $ 56.78.

Instrument: USDWTI
Order: Buy
Entry price: $ 58.00
Stop: $ 57.40
Target: $ 61.00

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.