Crude oil price has declined and a barrel is currently trading at its lowest level in a month. Where are the indicators? The following technical analysis reveals.
19 October, ADS Securities – The price of the Crude oil barrel is currently trading at its lowest level in a month just above $68.5, loosing nearly 2% on a daily basis.
This fall in prices came on the back of rising US Crude inventories and production as OPEC mentioned. A report from OPEC to WSJ explained that:
“a coming seasonal scale back in refinery demand could result in oil stock builds. The buildup amid the upward trend in US crude oil production, could be a bearish factor for oil prices in the coming few weeks”.
Crude Oil Technical Analysis
Oil prices broke below the $70 level after breaking the long term purple trend line to downside and settled below the $69 level.
The RSI is pointing towards a huge divergence of the momentum with the price so a little pullback or a retest of the recently violated support levels at $70.3 and are expected to occur.
Support: 73 72.73
Resistance: 73.5 74.25
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