Oil price is struggling near April’s lowest level in Europe session today (August 2, 2016). Oil price remains bearish as signs of increasing oil production in US and increasing output of OPEC members.
WTI for April delivery fell 7 cents or around 0.17% at $39.98 at 08:10 GMT. At the beginning of European session, oil price fell to $39.84, which is the lowest sinve April 19.
If we look back from the highest price in 2016 above $50/barrel, WTI has fallen almost 23%.
Oil price currently is under pressure, testing intraday key support at 39.81. 20 MA has crossed below 50 MA on hourly chart, stochastic has crossed down, CCI is falling but almost oversold.
If the price managed to break below 39.81, oil price possibly will keep under pressure with 39.33 as target and 38.79 in extension. As alternative strategy, watch for bearish signal confirmation on a pull-back move to within the Fibonacci resistance area at 40.59-41.08 with target at 40.29-39.81. Be careful if the price managed to break above 41.08 because it will turn the intraday bias bullish. In that case, oil price possibly will move up to 41.38-41.86.
– Sell on break of 39.81; S/[email protected], T/[email protected] or 38.79
– Sell on bearish signal confirmation on a pull-back move to within 40.59-41.08; S/[email protected], T/[email protected] or 39.81