WTI Crude Oil (current price: $42.27)
Oil reacted to the bearish U.S. data in a negative way, as the one-month old correction still looks to be intact. The decline took $10, or 20%, of the price of WTI already, after the $24 rally between February and June. The crucial commodity finished the session significantly lower again, as the dovish wasn’t enough to lift the beaten down commodity. The negative fundamental developments might mean that the correction will continue in the coming weeks, probably below the $40 level.
Our assessment: Oil is now back to the flat 200-day MA as it has been trending down in the past one month from the highs above $52, it will be interesting to see how the commodity reacts to the all-important indicator.
