WTI Price Analysis: Oil hits two-month low

WTI crude hits the lowest level in two months.
The bearish momentum looks strong, as per technical studies.

Omkar Godbole FXStreet Contributor

West Texas Intermediate (WTI), a North American crude oil benchmark, fell to $38.55 on Tuesday – the lowest since July 10.

At the current price of $39, the black gold is down 10.4% from $43.57 – the high of the bearish inverted hammer candle created on July 31. That candlestick pattern had warned of an impending sell-off.

More importantly, the price drop could be extended this week, as the daily chart MACD histogram is now printing deeper bars below the zero line. That's a sign of the strengthening of downward momentum.

The 14-day RSI is signaling bearish conditions with a below-50 print, and the 5- and 10-day simple moving averages are trending south, indicating a bearish setup.

On the downside, key supports are seen at $38.54 (July 10 low) and $37.08 (June 25 low). Alternatively, resistances are located at $40 (psychological level) and $41.97 (10-day SMA). A close above the 10-day SMA is needed to invalidate the bearish bias

Daily chart

Trend: Bearish

Technical levels

WTI

Overview
Today last price	39.21
Today Daily Change	-0.20
Today Daily Change %	-0.51
Today daily open	39.41

Trends
Daily SMA20	42.39
Daily SMA50	41.54
Daily SMA100	36.29
Daily SMA200	41.78

Levels
Previous Daily High	39.78
Previous Daily Low	38.8
Previous Weekly High	43.7
Previous Weekly Low	39.61
Previous Monthly High	43.86
Previous Monthly Low	39.75
Daily Fibonacci 38.2%	39.18
Daily Fibonacci 61.8%	39.41
Daily Pivot Point S1	38.88
Daily Pivot Point S2	38.35
Daily Pivot Point S3	37.9
Daily Pivot Point R1	39.86
Daily Pivot Point R2	40.31
Daily Pivot Point R3	40.85

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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