US Oil chart on Trading View used for analysis
- WTI starts the week on a bearish note, trades 1.85% lower on the day at 52.53.
- Baker Hughes data showed that of US oil rigs rose by 10 to 892 in the week ended Jan. 15 - the first weekly rise of 2019.
- US-China trade war, lower demand from Europe and the resulting slowdown in the global economy to add further pressure.
- Price is in a major downtrend and technical studies do not show any major signs of recovery.
- We see price action is extending sideways grind along 55-EMA resistance and break below 21-EMA could see further downside.
- We evidence slight bearish divergence on Stochastics which adds to the bearish bias.
Support levels - 52.22 (200-W SMA), 51.59 (21-EMA), 51.03 (20-DMA)
Resistance levels - 53.28 (55-EMA), 54.30 (Jan 22 high), 54.54 (Dec 4 high)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
