FXStreet (Córdoba) – Oil prices fell sharply on Wednesday, with WTI crude oil futures sinking towards $42.60 a barrel in the American afternoon, as US stockpiles grew by 6.3 million barrels last week, according to the data released late Tuesday by the American Petroleum Institute.
Ahead of the EIA report to be released Thursday, the commodity settled 2.9% lower at $42.93 a barrel,a few cents above its October low of $42.57.
WTI technical view
“The daily chart shows that the commodity has posted a lower high and a lower low for a third day in-a-row, whilst the technical indicators gain bearish momentum below their mid-lines, all of which supports a continued decline”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, an early attempt of advancing was strongly rejected by selling interest around a bearish 20 SA, currently around 43.90, while the technical indicators head strongly lower near oversold territory, signaling some further declines ahead, particularly on a break below 42.50, the immediate support”.
Bednarik sees next supports at 42.50, 41.90 and 41.35, while she locates resistance levels at 43.20, 43.90 and 44.70.
(Market News Provided by FXstreet)