Crude Oil Technical Price Forecast: Bearish
- WTI crude oil costs fell practically 10%, bringing costs to the bottom degree traded since February
- Prices breached the 200-day SMA and 90 psychological degree, tiring WTI’s technical posture
- A crossover of the 50- and 100-day SMAs is on the playing cards, threatening sentiment additional
WTI Crude Oil Technical Outlook
West Texas Intermediate (WTI) crude oil costs fell practically 10% final week, wiping out the prior week’s achieve and dropping to the bottom degree traded since February. While August simply began, costs are on monitor to file the third and largest consecutive month-to-month decline, assuming the prevailing bear pattern holds. Despite final week’s sharp decline, WTI costs are round 17% greater on a year-to-date foundation. However, if costs proceed falling eventually week’s tempo, it could put bears inside 7% of the January 2022 low.
That assumption appears more and more probably, given a number of bearish chart developments. Prices pierced beneath the 90 psychological degree earlier than pausing on the 61.8% Fibonacci retracement degree from the December 2021/March 2022 transfer. If costs break beneath the 61.8% Fib degree, costs might threaten a resistance zone turned to help from October 2021 and January 2022.
Overall, costs look poised to slip additional and prolong the downtrend that began in June. The transfer beneath the 200-day Simple Moving Average (SMA) is prone to improve the bearish sentiment on the commodity. The 50-day SMA is monitoring decrease, and a cross beneath the 100-day SMA appears imminent. That would generate a adverse sign that would put extra strain on costs. That stated, oil’s path of least resistance is to the draw back.
WTI Crude Oil Daily Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
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