WTI Crude Oil (current price: 36.42)
Oil hit the short-term declining trend-line that we pointed out in yesterday’s report. The negative fundamental news pushed WTI Crude more than $1 lower on the day to oversold territory. The downside move looks overextended on the short-term, as the sentiment is turning negative again towards the commodity. Traders will likely be focused on the $37 level as a possible resistance zone for the coming days. Oil should hold above the $35 support or it would be in the risk of re-testing the lows below $30.
Our assessment: A bounce is due in the price of oil, following the more than 15% decline that it suffered recently. WTI Crude is likely to stay in the range between $35 and $37 for the rest of the week.
