WTI crude oil recently tested resistance near $61.72 per barrel but faced selling pressure. After hitting these highs, prices have pulled back slightly and are now approaching key support zones that may decide the next market move.
Analysts say that the current price levels coincide with important Fibonacci retracement levels and the ascending price channel, making them critical for buyers and sellers.
Key Technical Levels for Traders
Traders should watch the following levels carefully:
- 38.2% Fibonacci level: $60.65
- 50% Fibonacci level: $60.32 (close to current price)
- 61.8% Fibonacci level: $59.99, near the 100-day SMA, which can act as strong support
If the price holds above these levels, bullish momentum may resume, potentially pushing crude oil toward recent highs. However, a break below $59.99 could trigger a deeper correction, warning traders to be cautious.
Moving Averages Support Uptrend
The 100 SMA (blue line) is above the 200 SMA (red line), confirming the upward bias. Both averages are rising and are below the current price, suggesting that the trend is still upward and dips may attract buyers.
Technical experts say that as long as prices stay above these dynamic supports, the bullish structure remains intact.
Momentum Indicators
The Stochastic oscillator is moving south toward oversold levels, signaling that selling pressure may soon ease. A bounce from oversold levels could attract new buyers, giving the uptrend a chance to resume.
The Relative Strength Index (RSI) is trending lower but has not reached oversold territory yet. Traders often see this as a signal that there is still room for a minor pullback before a possible recovery.
Fundamental Factors Driving Crude Prices
Several external factors can influence crude oil prices this week:
- Weather patterns affecting production and transportation
- Inventory reports from the US and other countries
- FOMC decisions impacting US interest rates and dollar strength
- US corporate earnings and global economic sentiment
Investors and traders need to stay alert as these factors can trigger volatility and sudden price swings.
Expert Opinion
Experts believe that crude oil is at a critical point. Prices hovering near $60–$60.50 will test buyer interest. If support holds, WTI could resume its uptrend toward $62 or higher. On the other hand, a failure to defend $59.99 could result in further downside to $58–$57 levels.
Short-term traders may prefer waiting for confirmation from technical indicators before entering new positions, while long-term investors may look at dips as buying opportunities.
Conclusion
WTI crude oil is at an important crossroads. Prices are testing key support levels near $60 per barrel, with momentum indicators showing mixed signals. Traders should monitor Fibonacci retracements, moving averages, and technical oscillators to make informed decisions. While the overall trend remains bullish, any break below critical support could signal a deeper correction in the short term.
FAQs
What is the current price of WTI crude oil?
WTI crude oil is currently trading around $60.27 per barrel as of January 27, 2026.
What are the key support levels to watch today?
Traders should watch the 38.2% Fibonacci level at $60.65, 50% level at $60.32, and 61.8% level at $59.99, which may act as strong support.
Could crude oil prices go higher this week?
Yes, if prices hold above key support levels and buyers step in, WTI could resume its rally toward $62 or higher.
What external factors may influence crude prices?
Weather, inventory reports, US Federal Reserve decisions, and global economic sentiment are the main factors that could drive price volatility this week.
Should traders buy now or wait?
Short-term traders may wait for confirmation of support levels, while long-term investors may consider buying on dips near $60 as part of a cautious strategy.