WTI oil managed to move away from session lows despite concerns over potential tariffs on Canada and Mexico. If WTI oil settles back above the $73.50 level, it will have a chance to gain additional upside momentum and move towards the $75.00 level. Brent oil tested new lows as traders remained focused on tariff threats.
The Relative Strength Index (RSI) is in moderate territory, suggesting there is room for near-term momentum. If Brent oil declines below the 50-day moving average at $75.29, it will move towards the next support level, located in the $71.00 – $71.50 range. As of January 31, 2025, Brent oil faces negative pressure, attempting to break the $77.05 level.
This critical support level demands caution from traders, as maintaining a position above $77.05 is crucial to keep the positive scenario active. The main target for Brent oil is set at $78.40. Confirming a break below $77.05 could exert negative pressure, potentially driving the price down to $75.66 initially.
The expected trading range for today lies between $76.00 support and $79.00 resistance. The trend forecast remains bullish. Crude oil is showing negative trades, moving below the $73.90 level.
This movement hints at a potential resumption of the correctional bearish wave.
Wti poised for momentum shift
Traders are advised to stay aside until the price confirms its position at this level.
Holding below $73.90 could push the price toward the next correctional target of $72.30. Conversely, consolidating above $73.90 could lead to positive targets, starting at $75.52. The expected trading range for today is between $72.80 support and $75.80 resistance.
The trend forecast is neutral. RHB Investment Bank Bhd (RHB Research) has reiterated its recommendation to maintain long positions on WTI Crude, noting that the commodity’s recent correction remains intact despite a marginal gain of US$0.04, closing at US$74.66 last Friday. The research house highlighted that the commodity’s price action, which saw an intraday low of US$74.01 and a high of US$75.21, indicates that the 200-day simple moving average (SMA) line is acting as a significant resistance level.
The RSI is also trending lower, suggesting a slowdown in bullish momentum, with the correction phase likely to persist unless WTI Crude falls below the US$73 threshold. Despite attempts at a rebound, analysts pointed out that the bears appear to be gaining strength as the commodity continues to trade below the long-term SMA line. The correction phase is expected to push WTI Crude towards US$73 before a potential rebound occurs.
The overall outlook remains positive, provided the commodity maintains its position above the US$73 support level. Traders are advised by RHB Research to retain their long positions established at US$73.13, with the stop-loss threshold set at US$73 to mitigate downside risks. The research house has identified immediate support at US$73, with the next level at US$70, should a further pullback materialize.
On the upside, resistance levels are pegged at US$77 and US$80, respectively.