WTI Crude Oil (current price: $46.90)
Oil has the second negative session in a row following last week’s strong rally that was mostly caused by comments by OPEC leaders regarding the cartel’s output. The commodity got close to the $50 level on Friday but it’s now trading below the $47 level again after Monday’s sharp decline. Strong support is found at $46.50 and below that at $44, with the prior highs near $52, providing overhead resistance for the coming weeks.
Our assessment: Oil rebounded strongly off the 200-day MA this month, but the current correction might lead to a re-test of the $46.50 support even if the uptrend remains intact.
