WTI oil futures (January 2022 delivery) faced the largest monthly decline since the start of the pandemic in November, with the price plunging well below its simple moving averages (SMAs) to meet support around a three-month low of 64.42 on Tuesday.

WTI oil futures (January 2022 delivery) faced the largest monthly decline since the start of the pandemic in November, with the price plunging well below its simple moving averages (SMAs) to meet support around a three-month low of 64.42 on Tuesday.

Despite a bearish start to the new month, oil could see its fortunes improving in the coming sessions as technical indicators are flashing oversold conditions. Particularly, with the market closing constantly below the lower Bollinger band during the past couple of days, the RSI forming a bullish double bottom below its 30 oversold level, and the Stochastics fluctuating below their 20 oversold mark, there is an increasing potential for a bullish bounce.

The 78.6% Fibonacci of the 61.27 – 85.39 upleg is currently limiting bullish flows around 66.88. Should it give way, the door would open for the 61.8% Fibonacci of 69.33 and the 200-day SMA slightly above. Then, if buying forces persist, the price could speed up towards the 50% Fibonacci of 73.62.

In the event sellers dominate below 64.42, the spotlight will shift straight to the August low of 61.77.A break below that floor could push some medium-term traders out of the market as well, likely bringing the 2021 March trough of 57.25 next on the radar.

Summarizing, WTI oil futures look bearish but oversold in the short-term picture. A step above the nearby resistance of 66.88 is expected to enhance buying appetite.

WTI

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 

EUR/USD News

GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.

GBP/USD News

Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more

Majors

Cryptocurrencies

Signatures