Technicals - WTI oil - further downside potential
QMG Pty Ltd
WTI oil - The close last night below the US$29.20 support level - the December 2008 low point - signals the next downward move, with major subsequent support now located at US$26.25. The WTI oil price had originally generated a technical sell signal at US$90.69 on 23/9/14. (The only re-entry buy signal was generated on 9/10/15 at US$49.90 which was subsequently negated in mid-November 2015). The WTI oil price generated a technical sell signal at US$41.60 on 12/11/15 and subsequently reached the US$34.00 target. The more recent break of the US$34.00 technical support indicated the potential for a downward move to US$29.20. Last night's decline has resulted in further key support being broken. There is no sign of a turnaround emerging, given the oil price is moving to "lower lows".
Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.