Thursday’s Technical Analysis For: WTI Crude Oil (USO)
$USO
WTI Crude Oil has been trading within a tight range below its 20 and 50-Day MA’s, and below the Minor resistance that was drawn recently (Red), while ADX shows a positive signal.
The Northside momentum is weak, as RSI14 did not affirm, while trading around 44.85-44.90 will keep the Neutrality in place, as risk Vs reward ratio is inappropriate. A clear break above 45.70 will cause Northside actions.
Support: 44.85 – 44.00 – 43.50
Resistance: 44.90 – 45.00 – 45.50
Direction: Neutral, standing aside
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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