WTI oil price managed to regain traction and edge higher on Tuesday after Monday’s fall was contained by 100DMA ($59.31).

Larger uptrend from $50.59 low showed initial signs of stall at important Fibo barrier at $60.47 (61.8% of $66.58/$50.59), where double-Doji has formed before Monday’s easing.

Bulls came under pressure after hurricane in the gulf of Mexico caused less than expected damage that resulted in restarting production on a number of oil platforms in the gulf.

Fears of fresh pressure on oil price on rising US shale production that is on track to reach record highs in August could put the price lower, with initial negative signal expected on violation of 100DMA  and further evidence of deeper pullback expected on break below trendline support ($58.65) and 200DMA ($57.74).

Extended consolidation can be expected while the price stays between 100DMA and Fibo barrier ($60.47), while strong bullish signal could be expected on firm break above $60.47 pivot.

Daily techs are in mixed setup and lack clearer direction signal for now, as markets are awaiting release of weekly US crude inventories report (API due later today and EIA on Wednesday).

Res: 60.00; 60.47; 60.88; 61.38
Sup: 59.31; 58.65; 58.15; 57.74

Oil

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD settles at 1.1050 on ECB, virus outbreak

The EUR/USD pair settled at its lowest for this 2020 after the European Central Bank announced a strategic review on inflation policy. Chinese coronavirus spreading abroad.

EUR/USD News

AUD/USD challenging weekly lows

The Aussie remains on the back-foot as the economy lost full-time jobs in December, while risk-aversion adds to the bearish case. Speculation mounts on an RBA rate cut next February.

AUD/USD News

Crypto Today: Bitcoin bears force critical

BTC/USD is currently trading at $8,400 (-3.40%) in the afternoon in U.S. hours, as markets bears break critical $8500 price mark, allowing for a wave of further downside pressure. 

Read more

XAU/USD bulls challenging 1573 resistance level

XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, the metal has been consolidating near the $1560 per troy ounce.

Gold News

USD/JPY falls to fresh lows, correcting on WHO statement

USD/JPY has tumbled to print fresh lows since failing on the 110 handle, scoring 109.26 and meeting the 200-moving average on the four-hour chart.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures