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Oil has 2015-Lows In Headlights

Oil prices has been sliding again in July. As we wind down the month, we saw WTI Crude fall from a multi-month high just under 62 to 46.70, a low not seen since March. 

WTI Crude Oil 4H chart 7/31

(click to enlarge)

Despite this week's bullish correction back to around 49.50, WTI Crude still looks bearish in the 4H chart. The break above a falling trendline was not very convincing especially after price retreated back under 49.00. Price is still under the 200- 100- and 50-period simple moving averages (SMAs) in the 4H chart. The 4H RSI has also been holding under 60 after tagging below 30. 

Now, let's say we DO get another bullish correction next week. With such a strong prevailing downtrend and bearish momentum, we should limit any bullish outlook to the very short-term, monitoring for resistance around 50, or at most the 50.60-51.41 support/resistance pivot area. 

The technical signs point to a bearish outlook back towards the 2015-lows. 

WTI Crude Daily Chart 7/31
(click to enlarge)

The daily chart shows that the current decline does not have any key support until the 42.06-43.57, 2015-lows.