In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTI OIL for 2nd January 2024.
Key Takeaways
- Geopolitical tensions: Investors are concerned about whether geopolitics in the Red Sea will continue to escalate. Britain is considering launching air strikes against Houthi armed targets after the US Navy sank three Houthi armed boats. Be wary of unusual fluctuations in crude oil and gold this week.
- Supply Glut: Oil prices fell nearly 20% in the fourth quarter of last year as record supply from the United States and other countries offset the impact of OPEC+ production cuts. Oil consumption growth is expected to slow sharply this year, prompting forecasts of a supply glut.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The fast line has declined below the 50 midline, and the rapid downward trend implies that crude oil will continue its downward trend.
- Price Action: Yesterday, oil prices rose rapidly and stepped back against the red 33-day moving average. After failing to break through moving average, they fell rapidly and fell below the doji low, giving short sellers the upper hand.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator has entered the oversold area, indicating that the current short positions are overcrowded, and there may be a short-term consolidation callback during the Asian session.
- Fibonacci retracement level: Crude oil fell rapidly to the lower edge of the downward channel yesterday, and the overall trend will enter a correction stage in the short term if it encounters resistance. Usually the retracement of a fast trend looks toward the 38.2% retracement level.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 71.25,
- Bullish Scenario: Bullish sentiment prevails above 71.25, first target 71.70, second target 72.20;
- Bearish Outlook: In a bearish scenario below 71.25, first target 69.55, second target 69.00.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
