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Who do you think is having a worse week?

Ye whose brand Yeezy got canceled by its bank JP Morgan Chase?

Or OPEC+ members who are looking at today’s U.S. crude oil prices?

I’m sure we’ll soon find out how Ye feels about JP Morgan Chase but for now OPEC+ members must NOT be liking the slide in oil prices.

WTI Crude Oil (USOIL): Daily

WTI Crude Oil (USOIL) Daily Chart

WTI Crude Oil (USOIL) Daily Chart

WTI crude oil (USOIL) turned lower from the $94 area at the start of the week and hasn’t had a good day since.

And why not? Not only did the $94 resistance line up with the 38.2% Fibonacci retracement of 2022’s big downswing, it was also around an area of interest that bulls and bears have been minding for all of this year.

The daily time frame’s technical indicators aren’t exactly putting out bullish vibes either.

The 100 SMA just crossed below the 200 SMA, indicating that shorter-term swings are more bearish than its longer-term trends.

And then there’s the hidden bearish divergence on the chart that’s pointing to a continuation of the daily chart’s downtrend.

Oil bulls will need a significant market event if WTI oil prices are to maintain any bullish momentum. That might happen someday, but probably not today.

Lower demand from the U.S. and China – the world’s largest and second-largest economies – factored in the OPEC and the U.S. Energy Department downgrading their demand expectations for 2022 AND 2023 this week.

Meanwhile, a recent report showed U.S. crude stockpiles jumping by more than 7 million barrels last week.

Last but not least, the Fed’s meeting minutes reflected the members’ commitment to raising rates and keeping them high to combat inflation.

Trend traders can take advantage of the strong bearish candlesticks and jump on WTI’s downtrend until it sees hesitation or bullish daily candlesticks.

September’s $76.30 lows is a good target though oil prices could find support from the $85.00 area of interest.

If you’d rather buy oil this week, then you’ll want to do it on shorter time frames where WTI is reacting to moving averages and Fibonacci support levels.

Good luck and good trading this one!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.