Crude oil extends losses into a fourth day amid supply concerns

By FXStreet FXStreet (Córdoba) – Crude oil extended its decline into a fourth consecutive day on Monday, with WTI futures ending the day 1% lower at $43.80 a barrel amid lingering concerns about global supply glut.

The American Petroleum Institute (API) will release its inventory data on Tuesday while the US Department of Energy’s Energy Information Administration will publish its data on Thursday.

WTI technical view

“Technically, the daily chart shows that the price has extended further below its 20 and 100 SMAs, whilst the technical indicators are retreating from their mid-lines, and head slightly lower in negative territory, in line with a continued decline”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the 20 DMA has accelerated its decline above the current level, and below the 100 and 200 DMAs, whilst the technical indicators lack clear directional strength near oversold levels. The daily low was set at 43.63, yet the price needs to extend below 43.35, a strong static support level, to confirm a continued decline for this Tuesday”.

Bednarik locates next support levels at 43.35, 42.50 and 41.90, while she places resistances at 44.70, 45.20 and 45.90.
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Source:: FX Street