Thursday’s Technical Outlook For: WTI Crude Oil (USO)
$USO, $OIL
Crude Oil closed lower Wednesday.
The low range close sets the stage for a steady to lower opening when Thursday on NYMEX.
Stochastics and the RSI are Neutral to Bearish indicating that sideways to lower prices are possible near term.
If WTI Crude Oil extends this week’s decliner, the August low crossing is the next Southside target.
Closes above the 20-Day MA crossing will confirm that a short term low has marked.
In the Asian session, at GMT0400, WTI Crude Oil is trading at 43.19, or + 0.23% higher from Wednesday’s close.
WTI Crude Oil is expected to see 1st support at 42.50, a break there could push it to next support at 41.82.
WTI Crude Oil is expected to see 1st resistance at 43.99, a break there could drive it to next resistance at 44.80.
WTI Crude Oil is trading below its 20 Hr and 50 Hr MA’s
Outlook: Bearish
Position: Short (long term)
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 technical and fundamental outlook for both Brent and WTI Crude Oil is due South.
OPEC says it will cut production but is not doing that, 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.
Have a terrific week.
HeffX-LTN
Paul Ebeling
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