Technical Report on WTI Crude Oil (Daily)
WTI Crude Oil: US Crude Oil prices fell to fresh 2 month lows Monday, breaking below the psych mark at 45.00 as following news that US production keeps rising, Canadian output also rose, as producers begin recovering from the wildfires that hit Alberta months ago.
Adding to the Bearish case was declining demand coming from Asia, due to local concerns of an economic slowdown, following weak Japanese and Chinese data.
US WTI Crude Oil settled down 1.45% at 44.50 bbl by the end of the US session, and poised to extend its decline, given that in the daily, the price is extending below its 100-Day MA for the 1st time since early March, as the RSI indicator heads South at 36.
Near term, the 4 hours shows that the 20-Day SMA has accelerated its decline, now offering a strong dynamic resistance around 45.75, the RSI indicator hovers around 34 and the Momentum indicator heads higher within negative territory, recovering from oversold readings.
So, with the price pressuring the low at the end of the day, further slides are to be expected, 1st towards 43.95, 11 May low, and further towards the 42.50 strong support.
Support marks: 43.95 43.20 42.50
Resistance marks: 45.10 45.80 46.30