The WTI oil price major support is now located @US$56

The WTI oil price major support is now located @US$56. It originally generated a technical sell signal at US$90.69 on 23/9/14. The technicals have remained negative since late September. The oil price has progressively moved into lower technical trading ranges. During last week QMG clients were provided with a technical alert highlighting the prospect for the next downside move in the oil price, with the US$56 level nominated as next major technical support. Although the WTI oil price is in oversold territory on a RSI / momentum basis, there is no sign of base forming emerging, which is required for a technical buy signal to be generated.