-
WTI oil futures gain positive momentum above short-term SMAs.
-
Next challenge could occur within the $71.90-$72.50 area.
WTI oil futures are poised for a bullish start to the new year, having cemented the base around the $66.70 level, which successfully halted selling pressure for the fourth time in December. More recently, prices have climbed above both the 20-day and 50-day simple moving averages (SMAs), reinforcing the possibility that the recent rebound could gather further momentum.
The rising RSI and MACD endorse the positive scenario, but traders are unlikely to push the price higher unless they see a solid close above the nearby resistance of $71.90-$72.50. This level coincides with the 38.2% Fibonacci retracement of the July-September decline and the descending trendline from June. A breakout higher could initially pause near the 50% Fibonacci of $74.10 and then move toward the 200-day SMA and the long-term trendline from September 2023 both seen within the $75.20-$76.40 region. Beyond that, the next key level is October’s high of $77.68.
Should the bears pop up near the $72.00 number, the price may again seek shelter within the $69.00-$70.00 area. If selling interest persists, the spotlight will turn to the critical $66.70-$67.40 region, a break of which could cause an aggressive decline toward the 2024 low of $64.60 and the $64.00 level.
Summing up, WTI oil futures are poised for a new bullish cycle, with the confirmational signal likely coming above $71.90-$72.50.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD extends slide toward 1.0300, touches new two-year low
EUR/USD stays under bearish pressure and trades at its lowest level since December 2022 below 1.0350 on Thursday. The pair turned south amid a resurgent US Dollar demand and worsening market mood. Investors stay cautious at the onset of 2025, awaiting the US jobs data for fresh incentives.
GBP/USD slumps to multi-month lows below 1.2450
Following an earlier recovery attempt, GBP/USD reversed its direction and declined to its weakest level in nearly eight months below 1.2450. The renewed US Dollar (USD) strength on worsening risk mood weighs on the pair as markets await mid-tier data releases.
Gold benefits from risk aversion, climbs above $2,640
Gold gathers recovery momentum and trades at a two-week-high above $2,640 heading into the American session on Thursday. The precious metal benefits from the sour market mood and the pullback seen in the US Treasury bond yields.
XRP rockets 11% as Bitcoin starts New Year with bullish bang
Crypto majors zoomed higher in the past 24 hours as the market entered a widely expected bullish year, with Bitcoin inching above $95,000 to shake off losses from last week. XRP surged 11% to lead growth among majors as of Thursday, led by $1.3 billion worth of trading volumes on Korea-focused exchange UpBit.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.