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West Texas Intermediate crude futures in the United States are trading down, but they are at their lowest, after a second day of strong selling pressure. Oil prices were hit on two fronts early Thursday. After fearing that President Trump will mitigate the sanctions against Iran, prices have dropped further after OPEC and its allies have not made a decision on a further reduction. important of the offer.
At 17:40 GMT, November WTI crude oil futures traded at $ 54.69, down $ 0.97 or -1.74%.
Oil has come under new pressure after the European Central Bank (ECB) took two important steps to support growth in the euro area, notably by reducing the deposit rate to -0.5%, compared to -0, 4%, and relaunching its bond purchases of 20 billion Euros a month from November.
Bearish comments from the International Energy Agency (IEA) also weighed on prices. The rise in US production would make the market equilibrium "discouraging" in 2020.
Daily technical analysis
The main trend is upwards according to the daily downward trend. However, the trend has been trending down since the formation of the reversal of closing prices at the top of September 10 at $ 58.64.
The main trend will drop on trade at $ 52.71. A move of $ 58.64 will reverse the reversal of the closing price and signal a resumption of the uptrend.
The minor trend is down. He changed to lower on Thursday when sellers pulled out the bottom at $ 54.75. This movement also confirmed the slowing momentum.
The main range is $ 63.52 to $ 50.48. Its $ 57.00 to $ 58.54 retracement zone is a resistance. This zone halted the rally to $ 58.64 on September 10th.
The short-term range is between $ 50.48 and $ 58.64. Its $ 54.56 to $ 53.60 retracement area is a potential support. This area stopped the rally earlier today at $ 53.93.
Daily technical forecast
Based on the previous price action and the current price at 54.69 USD, the direction of the WTI crude oil futures contract from November until the close of trading will likely be determined by the reaction of operators on the short-term level of 50% to 54.56 USD.
Bullish scenario
A sustained movement of more than $ 54.56 will indicate the presence of buyers. However, we are not looking for much intraday retracement.
Bearish scenario
A sustained movement of less than $ 54.56 will put renewed pressure on sales. This could expand Fibonacci sales in the near term to $ 53.60.
If $ 53.60 fails, look for a potential acceleration in the main fund at $ 52.71. The removal of this fund will change the main trend down, with sellers probably moving to the next fund on $ 50.48.
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