Oil prices moved sharply lower this week, with Brent Crude and WTI Oil officially moving into bear market territory below $63.00. What is next?
November 16, OctaFX – The price of crude oil remained at extremely low levels after the EIA released the crude inventories. Fears over slowing global growth and supply and demand issues pushed West Texas Intermediate Oil below the $55.00 support level.
Brent Oil lost close to twenty per cent of its value since October this year. Brent Crude Oil had previously traded well above the $80.00 level earlier this year, over the perceived threat of US sanctions on Iran and growing optimism about OPEC members output cuts.
Crude Oil Technical Analysis
The price of WTI crude oil moved slightly higher in the Asian session but remained near the lowest low since November this year. This was a minor support level as shown on the daily chart below.
The double exponential moving average indicators point to a sustained downward trend. The RSI is currently at 24, which is above yesterday’s low of 14. The XTIUSD pair is likely to continue moving lower. If it does, it will move to the 50 support level.
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