The WTI crude prices have been unable to break and show the sustenance above resistance of 51.25 levels.
Consequently, the current prices dip below DMAs again after rejecting below resistance of 51.25 with crossover on moving average.
On the broader perspectives, the prices have been struggling to clear above 23.6% Fibonacci and 21EMA levels but any breaks above could be deemed as previous consolidation phase to transform into reversal pattern.
For today, during European trading sessions, bears continued to evidence day lows of 45.79 levels.
For now, the commodity price behavior in the short run has been as it has gone well below DMAs especially after the formation of crossover (7DMA crosses below 21DMA) on daily terms.
On the contrary, we could also foresee bounce backs as long as long as major supports hold stronger, well then, expect new environment if 45.77, 44 .43 and 42.75 levels decisively.
Fundamentally, WTI crude oil prices showing more strength after the talks of OPEC’s oil production freezing.
Although the buying momentum has been reduced on monthly terms as leading oscillators are not indicative of the current , it would be very risky bets for medium term investors to expect dips below 44 .43 and 42.75 levels.
Daily signals convergence to the price dips, while Stochs approach oversold zone but still selling momentum is intensified on EOD terms.
indicates the interim downswings are most likely to extend further.
Moreover, today’s inventory check from EIA during the US session today is most likely to stimulate WTI prices.
The EIA is anticipated to announce a spike of one million barrels in U.S. crude stocks. The suspicion remains about OPEC’s ability to deliver a planned cut in output to 32-5-33 million barrels a day to address a global supply glut.
Hence, on hedging grounds, the medium term crude oil traders who wish to invest in this commodity are advised to add shorts in crude of November month delivery for targets of 44 .43 or 42.75 levels but also add a stop loss of 48.60 levels.
Having mentioned that, shorting near term contracts does not mean that the major trend of this energy commodity which is in consolidation phase has potential and shorts in near month are just meant for mitigating short term swings.