WTI Crude Oil (current price: $19.51)
Oil continued its correction on the last two days as we expected and it violated the key $44 support/resistance level yesterday. The crucial commodity trades in a declining short-term trend channel just above the flat 200-day MA currently at 41.25. The lower boundary of the channel looms around $42, as oil finally cleared the overbought readings on the momentum indicators after four months of relentless advance.
Our assessment: Oil might still drop before the current correction ends, but the commodity is already 17% below its previous high, and multiple strong support levels are found near the current rice.
