FXStreet (Córdoba) – Crude oil prices accelerated the decline, with West Texas Intermediate futures falling all the way to a fresh 2-month low of $42.57 a barrel.
Ahead of the weekly stockpiles reports, the commodity sunk on speculation US oil reserves grew last week, for the fifth consecutive week. Meanwhile, the US government announced that it plans to sell millions of barrels of oil from its Strategic Petroleum Reserve from 2018 through 2025.
WTI technical view
“Holding a handful of cents above 43.00, the daily chart presents a strong bearish tone, as the technical indicators continue heading lower near oversold levels, whilst the price has extended further below its 20 SMA”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price remains well below a bearish 20 SMA, currently around 44.40, while the technical indicators are aiming higher, but are still in oversold territory, far from suggesting a stronger recovery. The commodity has an immediate resistance at 44.20, a former strong support and the upside will remain limited as long as selling interest surges on approaches to it”.
Support levels: 42.60 42.10 41.50. Resistance levels: 43.40 44.20 45.00.
(Market News Provided by FXstreet)