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WTI Crude Technicals – 105.5 Resistance Holding Despite Chinese Cheers

Crude prices continue to push lower, giving up all the gains from last week’s better than expected DOE implied demand and FOMC’s non-tapering event [1]. It is clear that market is extremely bearish from the get go this week, with prices gaping lower on open this morning, sending prices below the key 105.5 level. Prices has recovered a little, but is still staying mostly under the 105.5 key support. Even a stronger than expected Chinese Manufacturing PMI [2] failed to inspire bulls to push higher, suggesting that the underlying bearishness is highly strong.

Hourly Chart

/mserve/WTI_230913H1Retry.PNG

From a technical perspective, prices is facing additional bearish pressure from the descending trendline on top. Stochastic readings are pointing higher, but it is possible that readings may be able to reverse from the 20.0 level and lend affirmation to the 105.5 bearish breakout.

Weekly Chart

/mserve/WTI_230913W1.PNG

Weekly Chart is more bearish, with a bearish cycle signal formed coinciding with a re-entry back below 108.5 – 109.0 ceiling. Should the bearish cycle enters into full flight, we could easily see prices eventually hitting 100.0 or even sub 100.0 levels, but right now the immediate bearish target will be the 103.0 consolidation floor. Should Stoch levels manage to push below 60.0 coinciding with a 103.0 break, further bearish targets then can be contemplated.

More Links:
AUD/USD – Eases back to below 0.94 [3]
EUR/USD – Continues to settle above 1.35 [4]
GBP/USD – Finds Support at Key 1.60 Level [5]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Mingze Wu

Mingze Wu [10]

Currency Analyst at Market Pulse [11]
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu
Mingze Wu

+Mingze Wu [14]