- Crude oil prices turned sharply lower after the beginning of the American session.
- WTI drops more than 3%, to the lowest since July 1.
Crude oil and equity prices tumbled during the American session, ending a period or relatively limited moves across financial markets. WTI fell from $40.80 a barrel to $39.25, reaching the lowest level in a week. Earlier, it approached $41.00.
The slide gained speed as equity prices in Wall Street turned to the downside following a ruling from the US Supreme Court regarding Trump’s financial records. The Dow Jones is falling almost 2%, and the S&P 500 drops 1.50%. US bond yields hit fresh daily lows with the 10-year falling to 0.620%, matching June’s low.
The rebound in WTI from the lows found resistance at $40.00, and as of writing, it is moving toward daily lows.
WTI technical outlook
The decline in WTI also gained momentum for technical factors. Price broke an uptrend line around $40.40 and also the support area near $39.75. The negative bias and it appears to be gaining momentum again. Currently, it stands at $39.40. A daily close around current levels would point to some weakens ahead. Recently it tested the 20-day moving average that stands at $39.20, a close below would be the first one since April. On the upside, for WTI to clear the way to more gains, it needs to break and consolidate above $41.00.
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