WTI Crude Oil (current price: $39.95)
The crucial commodity rebounded after the sharp drop on Monday, but WTI is now trading back below the crucial $40 level after a late-day slump. The short-lived intraday rally in U.S. stocks helped oil yesterday, but the weakness in Asian and European markets might cause further problems for the struggling energy sector. The commodity is now below the flat 200-day MA and it’s right at the lower boundary of a declining short-term trend channel.
Our assessment: Oil is still under pressure as it fell on 13 out of the last 15 sessions, but a correction to re-test the 200-day MA is possible now, as the momentum indicators are showing oversold reading.
