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From the last couple of months, the issues of the supply glut in EIA’s inventory check has been prevailing, as a result, the crude bears resumed at the highs of 46.49 levels and the prices tumbled to the current 45.21 levels.
We foresee absolutely no momentum for any buying interests, price losses may drag until a retest of the strong support at 44.98 levels (on 1H charts).
Intraday technicals suggest sell indications as the signaling clear convergence with the dipping prices (currently trending below 38 levels while articulating).
While slow have also shown %D crossover (currently %D line at 49.5345 & %K line at 28.4916), so overall we still see selling pressures in this commodity at the current stage.
While on monthly charting suggest that the price consolidation pattern ever since the formation of dragonfly now seems to have been exhausted at 23.6% Fibonacci levels from the bottoms of 26.08 levels (see monthly chart for the bulls struggle to break out the price levels at 23.6% levels).
That is where the diverge to the previous price rallies which is deemed as weakness in this pair.
Current prices on monthly are struggling to jump above 21EMA and have slid well below SMAs on intraday charts.
Overall, we could foresee weakness in the price stability in the short run, consequently, WTI crude prices for October delivery on the NYME slumped 99 cents, or 2.14%, at $45.31 a barrel. We recommend remaining short in near month for targets upto 44.65 levels with strict stop loss of 45.75 levels.