Friday’s Technical Outlook For: WTI Crude Oil
$USO
The October WTI contract has moved below 113% Fibo retracement at 41.60 along with Bearish signs on ADX, RSI also is moving Bearishly below 30.00.
Negative factors dominate the charts of Crude Oil, as prices continued to move inside the Bearish channel and below MAs.
Thursday’s long red candle is another negative indicator and am targeting 40.00 followed by 39.00-38.95 near term
On the Northside
WTI Crude Oil trading below 41.60 is required to keep the Bearishness good.
Support: 40.50 – 40.00 – 38.95
Resistance: 441.00 – 41.60 – 42.00
Direction: Bearish (South)
Crude Oil has fallen this year even US gasoline demand expanded, stimulated by a growing economy and low prices. Total gasoline supplied to the US market rose to an 8-yr high of 9.7-M BPD last month, according to US Department of Energy data.
WTI Crude Oil could fall to 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st.
OPEC is saying we are not going to cut production, we 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.
Stay tuned…
HeffX-LTN
Paul Ebeling
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