WTI: In Store For Further Downside?
It's no surprise that Oil has taken a hammering of late, whipping out all of its gains from the Saudi attack and currently trading at 52.92 dollars per barrel at the time of writing. Global demand is decreasing whilst supply is on the up, a perfect storm for lower Oil prices, so where does this leave the sweeter Oil?
$51 per barrel is currently holding Oil up very nicely since the start of June and has turned into some solid support but, upside momentum is lacking and there are multiple levels of resistance overhead. Having studied the commodity for so long I usually tend to find that before we head into some real trouble globally (recession) we have a spike higher in Oil before the big collapse, is the Saudi attack the big spike?
Looking at the higher time frames and it doses not give me much hope, trending lower with bearish candlesticks forming, breaking key support levels on the way down. $51, $48 and $45 are my key support levels that WTI will need to hold to keep its head above water. If the $45 level goes it will be a blood bath, that level is arguably the most important in my opinion. Daily chart below....