We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Crude Oil Price Outlook: Crude Catches Trendline Support - WTI Levels

Crude Oil Price Outlook: Crude Catches Trendline Support - WTI Levels

2020-01-15 13:30:00
James Stanley, Currency Strategist
Share:

Crude Oil Talking Points:

  • The early-year spike in Crude Oil prices has been completely priced-out at this point, with WTI prices almost 5% below last year’s close.
  • While WTI spiked above the $65 level just last week, calming tensions around the US-Iran scenario have allowed for an aggressive pullback to show. Those declines have started to slow this week as a trendline has come-in to the matter to help offer support.
Traits of Successful Traders
Traits of Successful Traders
Recommended by James Stanley
Traits of Successful Traders
Get My Guide

Crude Oil Price Spike Quickly Dissipates

There was immense pressure on the bid in crude oil prices as the page turned into 2020. While WTI spent much of last December grinding higher to finally climb above the 60-level, it was increasing tensions between the US and Iran shortly after the New Year’s open that catapulted crude prices up to a fresh eight-month-high. But, as looked at shortly after that high printed, chasing the move appeared dangerous and short-side fades began to look more attractive as price action had started to settle.

That downside move has continued until price action in WTI found support at a bullish trendline projection. That trendline started to come into play on Monday and has since helped to hold the lows following a precipitous decline over the prior week.

WTI Crude Oil Four-Hour Price Chart

wti crude oil four hour price chart

Chart prepared by James Stanley; Crude Oil on Tradingview

On a shorter-term basis, the intersection with that trendline has brought back-and-forth price action over the past couple of days, offering a bit of reference for near-term strategy. This recent outlay doesn’t quite have the consistency of a range but, nonetheless, offers some usable levels that traders can incorporate into strategy parameters. The level at 58.65 becomes of interest, as this was a prior swing-low that’s turned into near-term resistance. Traders looking to get short in WTI could look for a re-test at this level, combined with a show of sellers to re-open that door. Alternatively, should prices test above this price, amounting to a fresh two-day-high, there could be potential for short-term bullish strategies as well, looking for price action to push towards the 60-level. There’s a Fibonacci level at 59.64 that could come into play for a more nearby profit target before the 60 big figure might reenter the equation.

Oil - US Crude BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 0% -8% -2%
Weekly 15% -18% 6%
Current Retail Sentiment
Get My Guide

WTI Crude Oil Hourly Price Chart

wti crude oil hourly price chart

Chart prepared by James Stanley; Crude Oil on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.