Crude oil holds bearish potential

FXStreet (Córdoba) - Oil prices came under pressure at the beginning of the week, with West Texas Intermediate crude oil futures ending the day down around $ 44.10 a barrel, led by a tumble in gasoline futures that slide to an 8-month low on oversupply concerns. The black gold was also weighed by Chinese data, as local investment and factory output readings missed expectations in August.

WTI technical perspective

“Technically, the bearish potential has increased daily basis, as the price is currently pressuring a mild bullish 20 SMA, whilst the Momentum indicator heads sharply lower after crossing its mid-line towards the downside. In the same chart, the RSI indicator heads lower around 47, in line with further declines”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the technical indicators have tuned south below their mid-lines, whilst the price moves between its moving averages, all together in a $ 2 range and flat, clearly reflecting the absence of directional strength. Buyers have been surging in the 43.30/40 region last week, which means stops have likely built below it, and if triggered, would lead to a sharper decline”.

Support levels 43.30 42.50 41.80. Resistance levels: 45.10 46.40 47.20.