Thursday’s Techincal Outlook For: WTI Crude Oil (USO)
$USO, $OIL, $GS
Following Wednesday’s inclines, small body candles have been formed in the Asian session, as the low liquidity conditions dominated the movements ahead of Fed’s FOMC interest rate announcement.
WTI Crude Oil stabilized above 23.6% Fibo mark at 46.55, a good technical catalyst in here.
Strength of Bullish trend is seen on ADX and on RSI14, which moves near 70.00 levels, but above the MAs.
So, the Bullish scenario remains intact with stable move above 47.80, targeting the psych mark at 50.00.
Support: 46.55 – 46.00 – 44.85
Resistance: 47.80 – 48.25 – 49.35
Direction: Bullish near term
Note: Goldman Sachs is calling for 15 yrs of weakness in Crude Oil with a price posibility of 20 bbl.
Crude Oil has fallen this year and US gasoline demand softened. WTI Crude Oil could fall to as low as 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st.
Iran is soon to release 53-M bbl to the market and will be producing up to 1.5-M BPD in 6 months or so.
Long term outlook for both Brent and WTI Crude Oil is due South.
OPEC says it will cut production, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.
Stay tuned…
HeffX-LTN
Paul Ebeling
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