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WTI Crude Oil (current price: $42.10)
Oil rebounded from the widely watched $44 resistance on Tuesday, and the crucial commodity declined sharply yesterday getting close to the 200-day MA and the key support near $41.25. The declining trend channel that dominated trading since early June is still intact, and a re-test of the prior lows near $39 is possible following the recent correction. U.S. Crude Inventories rose unexpectedly last week by 1.1 million barrels and that led to the strong sell-off yesterday during the afternoon session.
Our assessment: Oil is still trading in a clear downtrend following a historic rally that took the commodity higher by 85% between February and June. The 200-day MA might serve as the most important indicator in the coming month for WTI Crude.
