Monday Technical Analysis: WTI Crude Oil (USO)

WTI Crude Oil closed lower Friday.

The low range close set the stage for a steady to lower open Monday on NYMEX.

Stochastics and the RSI are turning Neutral to Bearish indicating that a short term top is in or close.

Closes above last Tuesday’s high crossing are needed to renew the rally off of the May lows.

If WTI Crude Oil resumes the decline off of its May highs, the 50% Fibo retracement mark of the March-May rally crossing is the next Southside target.

 

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Crude Oil’s collapse is largely attributed to lower global demand, which was accompanied by more production from the Organization of the Petroleum Exporting Countries (OPEC). OPEC members, seeking to defend their market share of a highly oversupplied Crude Oil market, have engaged in a ‘price ware.”

West Texas Intermediate (WTI), also known as WTI Crude Oil or Texas light sweet, is a grade of Crude Oil used as a benchmark in Oil pricing.

This grade is described as light because of its relatively low density, and sweet because of its low sulfur content.

Crude Oil is the underlying commodity of Chicago Mercantile Exchange’s COMEX Oil futures contracts.

The price of Crude Oil is often referenced in news reports on Oil prices, alongside the price of Brent Crude (OIL) from the North Sea.

Other important Oil markers include the Dubai Crude, Oman Crude, Urals oil and the OPEC Reference Basket.

WTI Crude Oil is lighter and sweeter than Brent Crude Oil, and considerably lighter and sweeter than Dubai or Oman.

Have a terrific week.

Paul Ebeling

HeffX-LT

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