WTI futures fail to breach the ascending trendline
Oil drops below 50-day SMA towards October low
Momentum indicators tilt to the bearish side
WTI oil futures (November delivery) had been in a steady advance since July, climbing to a 13-month peak of 95.02 on September 28 before experiencing a correction. Even though oil managed to halt the retreat and recoup some losses, its recovery seems to be fading.
Should the bears attempt to push the price lower, the recent support of 81.50 could act as the first line of defense. Diving beneath that zone, the price could decline towards the August low of 77.60, which overlaps with the 200-day simple moving average (SMA). Even lower, the June resistance of 75.00 may provide downside protection.
On the flipside, if buying interest reignites, the price could re-test the ascending trendline that connects the higher lows since July ahead of the recent resistance of 87.20. Conquering this barricade, the bulls could aim for the September support of 88.20. A violation of that hurdle could open the door for the 13-month peak of 95.02.
In brief, WTI oil futures managed to pause the latest retreat but their recovery seems to be faltering. However, a fresh lower low is needed to turn the short-term picture to bearish.
WTI futures fail to breach the ascending trendline
Oil drops below 50-day SMA towards October low
Momentum indicators tilt to the bearish side
WTI oil futures (November delivery) had been in a steady advance since July, climbing to a 13-month peak of 95.02 on September 28 before experiencing a correction. Even though oil managed to halt the retreat and recoup some losses, its recovery seems to be fading.
Should the bears attempt to push the price lower, the recent support of 81.50 could act as the first line of defense. Diving beneath that zone, the price could decline towards the August low of 77.60, which overlaps with the 200-day simple moving average (SMA). Even lower, the June resistance of 75.00 may provide downside protection.
On the flipside, if buying interest reignites, the price could re-test the ascending trendline that connects the higher lows since July ahead of the recent resistance of 87.20. Conquering this barricade, the bulls could aim for the September support of 88.20. A violation of that hurdle could open the door for the 13-month peak of 95.02.
In brief, WTI oil futures managed to pause the latest retreat but their recovery seems to be faltering. However, a fresh lower low is needed to turn the short-term picture to bearish.
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