Keeping the Bearish Bias in Oil As Fundamentals and Technicals Point Down
Crude Oil has formed a bearish reversing signal on the daily, while fundamentals are looking increasing dovish
Crude Oil has been on a bearish trend for more than two months, since the middle of Jun which is quite clear on WTI in the daily chart below. We saw a bullish retrace higher in the second half of the week, but it seems like the retrace ended at the 20 SMA (gray) on the daily chart, which has been acting as resistance since the beginning of July.
The lows keep getting lower and so are the retraces higher, while the positive talk around the Iran nuclear deal is weighing on oil, which is now down $2 on the day. WTI Crude broke the August low of $86.74 and it dipped below $86 for a short time. This is the worst level since early February. So the global economic slowdown and more Iran supply are weighing on Oil.
Crude Oil Daily Chart – The 20 SMA Defining the Downtrend
US WTI Oil forming a bearish reversing pattern below the 20 SMA after the retrace higher
Besides that, Myanmar plans to import Russian gasoline and fuel oil to ease supply concerns and rising prices, the latest developing country to do so amid a global energy crisis.
US WTI Crude Oil Live Chart
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals