Technical Analysis – WTI futures break below 200-day SMA, approaching crucial area



WTI oil futures (September delivery) have been losing ground since early June when the price failed to surpass the 121.00 mark. Although a further decline had been rejected multiple times by the 200-day simple moving average (SMA), the price managed to close below this important barrier, endorsing a broader bearish technical picture.

The momentum indicators suggest that near-term risks are tilted to the downside. Specifically, the stochastic oscillator is sloping downwards in the oversold zone, while the MACD histogram is currently below both zero and its red signal line.

Should the selling pressure persist, the recent low of 88.20 could act as the first line of defence. Sliding beneath that floor, the commodity could challenge 85.30, which has provided both support and resistance in the past, before 73.00 appears on the radar. Failing to halt there, the December low of 62.30 might prove to be a tough obstacle for the price to overcome.

On the flipside, the price could ascend to re-test the 200-day SMA, currently at 94.50. Conquering this barricade, the bulls could aim for the recent peak of 102.00 before the attention shifts to the 114.00 hurdle. An upside violation of the latter could open the door for the trend reversal point of 121.00.

Overall, the recent sell-off in WTI oil futures is likely to resume since the price managed to cross below the crucial 200-day SMA. Therefore, a break beneath the 88.20 floor could attract further selling interest, sending the price to form fresh multi-month lows.


Latest News


Technical Analysis – EURGBP stays stuck between two diagonal trendlines



Technical Analysis – US 30 index at risk of bearish breakdown


Technical Analysis – BTCUSD retraces after hitting 2-month high

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.