WTI-OIL: Sell Below $44 | Stop @ $50 | Target @ $35 — $33
WTI Oil: Outlook Remains Bearish
The technical chart indicates that WTI Oil is forming Double Bottom pattern with the support at $44/barrel level. At the starting of 2015, prices rebounded from $44 and rose to $62. During the period of May prices consolidated in the range of 62 to 56.50 during May. However, prices broke the support level of $58 in June and fell to $44.
Prices are expected to reverse if it remains above the support level of $44 and retest the level of $62 again. However, a break below $44 may take the prices to $33, which is 61.8% retracement of the recent fall. Prices are currently at $44.50.
In 2008, prices fell from $147 and took support at $33 before reversal in early 2009 and tested the level of $115.
The market fundamentals indicate that crude oil inventory is rising due to production in the US, the Middle East, and fresh pumping of oil by Russia. This is adding to the already high Inventory stocks and prompt prices to fall in coming days.
