Oil: WTI tumbles more than 3%, remains under $40 at one-week lows
- Crude oil prices turned sharply lower after the beginning of the American session.
- WTI drops more than 3%, to the lowest since July 1.
Crude oil and equity prices tumbled during the American session, ending a period or relatively limited moves across financial markets. WTI fell from $40.80 a barrel to $39.25, reaching the lowest level in a week. Earlier, it approached $41.00.
The slide gained speed as equity prices in Wall Street turned to the downside following a ruling from the US Supreme Court regarding Trump’s financial records. The Dow Jones is falling almost 2%, and the S&P 500 drops 1.50%. US bond yields hit fresh daily lows with the 10-year falling to 0.620%, matching June’s low.
The rebound in WTI from the lows found resistance at $40.00, and as of writing, it is moving toward daily lows.
WTI technical outlook
The decline in WTI also gained momentum for technical factors. Price broke an uptrend line around $40.40 and also the support area near $39.75. The negative bias and it appears to be gaining momentum again. Currently, it stands at $39.40. A daily close around current levels would point to some weakens ahead. Recently it tested the 20-day moving average that stands at $39.20, a close below would be the first one since April. On the upside, for WTI to clear the way to more gains, it needs to break and consolidate above $41.00.
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
