WTI crude oil – under pressure
The crude market continued the downtrend in Monday’s session with the bears dragging the black gold further down this morning just above the 88 level.
This strong support area is of great interest as it is likely to provide guidance about direction in a market that continues to stand aside from the broader risk-on/risk-off dynamics. With a strong downwards trendline capping the price movement and the RSI set to break below 30 on the 30-minute chart it looks that intraday the bears have not quite run out of steam.
Short positions with targets at 88 and 87.55 are favourable as long as resistance at 90.3 remains intact. The economic calendar is relatively quite today with the Bank of Canada announcement and the US Richmond Fed Manufacturing Index among the most notable.
Published: 23 October 2012
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