WTI Oil price major support located @US$42.00

The WTI oil price originally generated a technical sell signal @US$90.69 on 23/9/14. The technicals have remained negative since September. A key part of the technical base forming process is the requirement for a renewed pullback after the initial rally off the recent low occurs. This secondary sell off phase commenced on Friday. Major long-term support that originated in 1998 is located at US$42.00. The WTI oil price must hold above this level during the renewed sell off phase, if there is to be any prospect of technical base forming in the near-term.