Crude oil extends losses into a second session

FXStreet (Córdoba) – Crude oil prices extended the decline for a second day in a row, with West Texas Intermediate futures down to $45.30 a barrel by the end of the US session. The commodity was hit by a large increase in US stockpiles last week, which resulted in a sharp reversal of the weekly early gains amid renewed oversupply concerns.

WTI technical indicators support a bearish continuation

“The daily chart shows that the price failed to sustain gains above its 20 DMA, whilst the Momentum indicator retreats from its 100 level and the RSI indicator heads sharply lower around 45, supporting a bearish continuation”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart the 4 hours chart shows that the price has accelerated its decline after breaking below the 38.2% retracement of its latest bearish run, and that the technical indicators have turned strongly lower below their mid-lines, indicating some additional declines for this Friday. The 23.6% retracement of the same rally stands at 44.65, now the immediate support, with a break below it exposing 42.57, October 27th daily low”.

Support levels: 44.65 43.70 43.10. Resistance levels: 45.90 46.65 47.10.

Crude oil prices extended the decline for a second day in a row, with West Texas Intermediate futures down to $45.30 a barrel by the end of the US session. The commodity was hit by a large increase in US stockpiles last week, which resulted in a sharp reversal of the weekly early gains amid renewed oversupply concerns.

(Market News Provided by FXstreet)