WTI Crude Oil (current price: $45.33)
Oil followed the course of global risk-on assets yesterday, as it declined yet again in reaction to the Yen’s jump. The most traded commodity still trades in its first deep correction in three months after falling as much as 15% from the June highs around $52. Traders will now probably focus on the key support level near $44 and the flat 200-day MA at $41.25 that is near the lower boundary of the current declining trend channel as well. Should the correction in risk assets continue, the drop might gain momentum again, as fundamentals are still mixed for the commodity.
Our assessment: Oil has been under pressure since early June following 4 months of lofty gains, and the declining trend seems to be still intact with strong resistance at $46.50, at $47 and around the $49 level.
