XM does not provide services to residents of the United States of America.

Technical Analysis – WTI oil futures trade with bearish bias as trendline breached



WTI oil futures (August delivery) lost almost 5% on Wednesday, tumbling to a six-week low of $101.53 before closing the day off its lows.

The bearish action breached the support trendline, which joined the lows from December’s bottom of $62.25, sending a warning signal that selling tendencies may escalate in the coming sessions. The clear negative trend in the RSI and the MACD, which have dipped back in the bearish area, is backing this narrative too.

That said, there is another shorter-term ascending trendline from April, which is still valid at $102.43, while the 23.6% Fibonacci retracement of the $130.50 – $92.19 downfall at 101.23 is adding extra importance to the region. Hence, sellers may wait for a decisive close below those obstacles before they aggressively squeeze the price towards the previous trough of $96.90. Then, all eyes will turn to the bottom of the three-month-old range area at $92.19. Notably, the 200-day simple moving average (SMA) is approaching the same territory. However, if it proves fragile, the decline could stretch towards the crucial constraining zone of $87.50 – $85.00.

Shifting to the upside, the price will need to crawl above the $108.85 – $111.35 region to retest the 20-day SMA and the $114.50 constraining zone. Higher, the $118.32 mark could reinforce some consolidation before the door opens for June’s high of $120.87.

Summarizing, WTI oil futures may remain under pressure in the short-term. A significant move below $101.23 could to set the stage for another sharp decline towards $96.90.


Latest News

Technical Analysis – AUDUSD gets bearish vibes

A

Technical Analysis – WTI oil futures in fierce battle with 50.0% Fibo

O

Technical Analysis – GER 40 index marks highs after highs

G

G

Technical Analysis – NZDUSD returns to bearish trend

N

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.