WTI posts lowest settlement since 2003

By FXStreet FXStreet (Córdoba) – Crude oil prices fell further on Monday, with sweet, light crude for February delivery down to its lowest since December 2003, posting a daily low of $30.84 a barrel before settling 5.3% down at $31.41. The decline was attributed to plummeting Chinese stocks, spurring fears of more reductions in global demand, in a largely oversupplied market.

WTI technical perspective

“The black gold is unable to catch a bid, and despite the extreme oversold readings, the technical picture still favors the downside, as in the daily chart, the technical indicators maintain their strong bearish slopes while the 20 SMA has turned further lower far above the current price”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator was strongly rejected by its mid-line, and presents a strong bearish slope whilst the RSI indicator heads south around 27, all of which suggests further slides are possible. In this last chart, the 20 SMA provided a strong intraday resistance, and stands now around 33.00.”

Support levels: 30.85 30.20 29.40. Resistance levels: 32.10 33.00 33.90.
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Source:: FX Street