[VIDEO] WTI Crude downward spiral remains intact

WTI Crude has failed to rally despite OPEC's extended production cuts.

• Interestingly, the recent retreat in the price action of WTI after a rebound of 19% from its Jun 2019 low has stalled right at medium-term descending trendline resistance from 23 Arp 2019 swing high that confluences with the 61.8% Fibonacci retracement of the decline from 23 Apr high to 05 Jun 2019 low. 

• Momentum remains negative as indicated by the RSI oscillator after a bearish breakdown from a significant corresponding ascending support at the 48 level. Therefore, if the 59.60 key medium-term pivotal resistance is not surpassed, WTI may continue its downward spiral in the next 1 to 3 weeks to target 54.35 follow by 50.90 next.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.