WTI Crude Oil January 28 Morning Strategy (Cheng Jingsheng)

Markets won't keep soaring forever. The short-term storm and oilfield disruptions are "flash in the pan," and the medium-term oversupply remains the main theme. After overnight WTI surged to $62.39/barrel, the rebound has weakened. Shorting at high levels is a more stable strategy at the moment. Grasping the rhythm is key to protecting profits and avoiding chasing highs.

On the news front, supply disruptions caused by the US winter storm and issues at Kazakh oilfields are easing, with production gradually recovering. The positive effects are unlikely to last. Non-OPEC+ high production levels and strong global supply surplus expectations in Q1 suggest that if today’s US GDP and core PCE data are stronger than expected, it will weaken rate cut expectations, boost the dollar, and be bearish for oil prices. If API/EIA inventories exceed expectations and accumulate, it will also suppress the rebound, with short-term selling pressure likely to appear quickly.

Technically, after a long bullish daily candle, WTI approaches strong resistance at 63-63.5. RSI is rising rapidly and nearing overbought levels. The 4-hour chart shows no synchronized increase in volume, indicating rising risk of a pullback. The current price is $62.39/barrel. Above, the strong resistance zone is at $62.8-63.3/barrel. Below, key support is at $60-60.5/barrel. With the rebound losing momentum, shorting at high levels offers a high cost-performance ratio.

In terms of operation, focus on shorting at high levels. Enter short positions in batches at $62.8-63.3/barrel, with a stop loss at $63.8/barrel. The initial target is $60.5-60, and if broken, then $59-59.5. If the rebound breaks through $63.8, exit immediately—no holding onto losing positions.

The above is only personal advice for reference. Please follow Cheng Jingsheng’s layout for precise strategies!!$BTC ‌$XAUT ‌