Downside movement sustains inside descending trend channel


  • WTI continues sell-off following the previous day’s downside momentum.
  • More losses for oil if price decisively breaks $68.20 crucial support zone.
  • Momentum oscillator holds onto oversold zone signifies underlying bearish momentum.

After testing the high near $69.42 in the US session, West Texas Crude Oil (WTI) edges lower Friday in the European trading session.

At the time of writing, WTI is trading at $68.27, down 0.66% for the day.

WTI daily chart

On the daily chart,  WTI has been under intense pressure since the beginning of the descending trend channel from the high of $76.40 made on July 6.

The formation of lower lows and lower highs tells about the bearish trend for oil prices. The next lower target for bears could be found at $67.65 horizontal support level.

The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD could accelerate the selling pressure toward the low of August 11 at $66.50. 

That said, the WTI bears could meet the next downside target at the $66.00 horizontal support level.

Alternatively, if prices move higher, it could retrace back to the $69.00 horizontal resistance level.

Next, the bulls would attempt to meet the high of  August 4 at $70.50.
A daily close above the mentioned level would further encourage WTI bulls to testify $71.10 horizontal resistance level.

WTI additional levels

 



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