Tuesday Technical Outlook for Crude Oil (USO)
After Friday’s choppy session, WTI Crude Oil futures finished lower Monday, pulling back from 5 month highs marked last week.
West Texas Intermediate Crude Oil settled at 42.64 on the NYMEX, -1.09, or 2.5% on the day capping a 4 day winning streak.
Investors assessed the potential effects of Saudi Arabia’s economic reform plan announced Monday, which aims to reduce its dependence on Crude Oil, as a US private data forecaster reported an over 1.5-M bbl increase in stockpiles at the Cushing, OK delivery hub in the week ended 22 April.
The Black Gold trades near its daily low of 42.57, and the daily shows that the technical indicators have turned due South from overbought marks, holding far above their mid-lies, in line with further declines, particularly on a break below 42.00.
Near term, the 4 hours supports more declines, as indicators are Bearish biased within negative territory, although the 100 and 200-Day SMA’s continue grinding higher well below the current mark seeing 40.70.
Support marks: 42.10 41.40 40.70
Resistance marks: 43.10 43.80 44.50