WTI Crude Oil Futures (November): Does oil rebound finish?

Oil prices were pressured by downbeat oil demand predictions by various oil-industry participants. U.S. WTI crude oil futures (November) shed 3.2% to $39.29 a barrel on Monday, the lowest level in two weeks.

Energy 2

Russia's oil output was slightly up to 9.93M barrels per day for the first 28 days of September, compared with 9.87M barrels per day in August, according to Bloomberg. In addition, the resumption of Libya's oil production also increased the global oil supply. Traders are worried about the risk of the rising supply, but the oil demand is still struggling.

On the economic front, the American Petroleum Institute (API) reported that U.S. crude-oil inventories fell 831,000 barrels in the week ending September 25. Later today, the U.S. Energy Information Administration (EIA) will release official crude oil inventories data for the same period.

From a technical point of view, the crude oil futures posted another bearish candle and washed out the recent rebound in the last few days on a daily chart. It shows that the bearish side is still determining the trend.

Currently, the prices returned the level below the 20-day moving average. In addition, the prices may form a potential right shoulder. A break below the horizontal level at $35.40 would confirm the Head and Shoulder pattern.

Besides, the relative strength index is also capped by a declining trend line.

The bearish readers could set the resistance level at $41.70, while the support levels would be located at $35.40 and $33.50.


Source: Gain Capital, TradingView

More from Crude Oil

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.