WTI fades the uptick above $ 51 China trade slump weighs - Forex Crunch

Weakening China imports and exports trigger risk-off, drag oil prices lower.
But losses appear capped amid a surge in Chinese oil exports and USD softness.

The bears fought back control and knocked-off WTI (oil futures on NYMEX) back below the 51 handle, as a sharp drop in exports and imports in the world’s no. 2 oil consumer, China, dented investors’ appetite towards the higher-yielding/ risk assets such as oil.

Disappointing Chinese trade figures heightened the global economic slowdown fears and led to a broader market sell-off, with the major European indices down nearly 1%.

However, the bulls manage to find some respite from a sharp jump in the Chinese crude imports for the month of December while a broad-based US dollar weakness also helps cushion the downside in the USD-denominated oil.

Further, a drop in the US oil rigs count also keeps the losses limited. The US energy services firm Baker Hughes said in a weekly report last Friday, the US drillers cut four oil rigs in the week to Jan. 11, bringing the total count down to 873.

Markets now look forward to the sentiment on the Wall Street for fresh trading impetus while the weekly crude supplies report from the US will offer the next direction on the prices.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 51.08
    Today Daily change: -88 pips
    Today Daily change %: -1.69%
    Today Daily Open: 51.96
Trends:
    Previous Daily SMA20: 48.12
    Previous Daily SMA50: 51.5
    Previous Daily SMA100: 60.54
    Previous Daily SMA200: 64.59
Levels:
    Previous Daily High: 51.96
    Previous Daily Low: 51.96
    Previous Weekly High: 53.57
    Previous Weekly Low: 48.33
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Previous Daily Fibonacci 38.2%: 51.96
    Previous Daily Fibonacci 61.8%: 51.96
    Previous Daily Pivot Point S1: 51.96
    Previous Daily Pivot Point S2: 51.96
    Previous Daily Pivot Point S3: 51.96
    Previous Daily Pivot Point R1: 51.96
    Previous Daily Pivot Point R2: 51.96
    Previous Daily Pivot Point R3: 51.96