- Oil.WTI has traded in a narrow range for the past couple of weeks
- $2 range from 48.40-50.40 has contained the last 15 closing prices
- Price currently probing the lower bound and threatening to break out
- Market remains in downwards channel
The price of oil is sliding so far today with Oil.WTI threatening to break out of its recent range. The market has been coiling in a fairly tight consolidation pattern for the past couple of weeks as shown by the last 15 closes coming in the $2 range from 48.40-50.40.
Longer term price appears to be in a falling channel with a series of lower highs and lower lows printed since the start of the year. The most recent OPEC meeting sparked a collapse in the market despite announcing the extension of the current supply cuts. Recent inventories have also been theoretically supportive of price with a sustained run of declining US stock piles according to the DOE release.
Oil.WTI remains in a bearish channel with a series of lower highs and lower lows in tact. Source: xStation
Nonetheless, the market remains under pressure and until there is a break above 50.40 the sequence of lower highs will remain in tact. A close below 48.40 would be seen as a positive sign for the shorts who will then look to 47.25 as the next swing level. Should this trade and fail to hold then a retest towards $42 then becomes possible.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.