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Focus on WTI OIL Today – 3rd January 2024


Comprehensive WTI OIL Analysis for January 3, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTI OIL for 3rd January 2024. 


WTI OIL Analysis 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. 

WTI OIL Technical Analysis 

WTI OIL Daily Chart Insights

WTI OIL Daily Chart Insights By Ultima Markets MT4
  • 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. 

WTI OIL 1-hour Chart Analysis

WTI OIL 1-hour Chart Analysis By Ultima Markets MT4
  • 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. 

Trading Central Pivot Indicator

Trading Central Pivot Indicator For Crude Oil
  • 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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