WTI oil futures (January delivery) have been stuck in a downtrend since mid-June when the price failed to surpass the 121.00 mark. Moreover, in the last few daily sessions, the commodity plummeted to a fresh 11-month low before recouping some losses.

 

The momentum indicators currently suggest that bearish forces remain in control. Specifically, the RSI is hovering beneath its 50-neutral mark, while the MACD histogram is below both zero and its red signal line.

If selling pressures persist, the September low of 76.25 could act as the first line of defense. A violation of the latter may trigger a retreat towards the 11-month low of 73.60. Failing to halt there, the price could decline further and form fresh multi-month lows, where the December 2021 support of 63.10 might curb further declines.

On the flipside, if buyers regain control, oil futures might ascend towards the recent resistance of 82.30. Piercing through this region, the spotlight could turn to 89.20 before the November high of 92.50 comes under examination. Conquering this barricade, the August high of 97.50 may prove to be a tough barrier for the price to overcome.

Overall, even though WTI oil futures appear to be gaining some ground after hitting an 11-month low, near-term risks remain tilted to the downside. Hence, a break above the 92.50 is needed to alter the short-term picture back to positive.

Oil

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

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stabilizes near 1.0850 following NFP-inspired selloff

EUR/USD stabilizes near 1.0850 following NFP-inspired selloff

EUR/USD came under strong bearish pressure and declined below 1.0850 as the US Dollar gathered strength on the impressive January jobs report. With Wall Street's main indexes rebounding from daily lows, however, the pair seems to have found support.

EUR/USD News

GBP/USD falls to 1.2100, looks to post large weekly losses

GBP/USD falls to 1.2100, looks to post large weekly losses

GBP/USD turned south and fell toward 1.2100 after the data from the US revealed that Nonfarm Payrolls increased by 517,000 in January. Although the US Dollar Index retreated modestly in the late American session, the pair remains on track to close the week deep in the red.

GBP/USD News

Gold extends slide to fresh mutliweek lows below $1,870

Gold extends slide to fresh mutliweek lows below $1,870

Gold price extended its slide after breaking below $1,900 and touched its lowest level since January 10 below $1,870. With the US January jobs report showing an impressive 517,000 growth in NFP, the benchmark 10-year US Treasury bond yield recovered above 3.5%, weighing heavily on XAU/USD.

Gold News

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The NFP data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

Read more

Amazon Stock Earnings: AMZN sags 5% on AWS revenue miss

Amazon Stock Earnings: AMZN sags 5% on AWS revenue miss

Amazon stock fell 5.1% afterhours on Thursday as the premier online retailer missed EPS overall for the quarter ending in December and saw growth in its cloud division drop to 20%.

Read more

Majors

Cryptocurrencies

Signatures