Hoping to catch some bearish oil moves these days?
Here are the short-term pullback levels you should keep tabs on!
WTI Crude Oil (USOIL): 4-hour
The commodity has been trending lower for nearly a month already, forming lower highs connected by a descending trend line seen on its 4-hour time frame.
Any chance to hop in this bearish trend?Crude oil is in the middle of a correction and might offer an opportunity to short at the nearby Fib retracement levels.
A higher pullback could still reach the 61.8% Fib at $96.29 per barrel, which might be the line in the sand for a bearish correction. A break above this area could mean that it’s time to switch to bullish mode!
Moving averages favor a continuation of the slide, as the 100 SMA is below the 200 SMA to confirm the presence of selling pressure.
In addition, Stochastic is closing in on the overbought region to reflect exhaustion among buyers. Heading back down could draw more oil bears out, so price could follow suit and make its way down to the swing low at $87.15 per barrel.
Oil market fundamentals are also pointing to further losses for the commodity, as the latest round of inventory data from the API and EIA printed larger-than-expected gains in stockpiles.
Do you also think oil demand is slowing or that supply is kicking into high gear?
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