WTI Oil Analysis – In line with stocks

Interesting situation is happening on the commodities. Black gold is down and shiny gold is up. From this, we can see that the sentiment on those two is not mostly influenced by the USD but we have some local factors. The one that is supporting the Gold is the global sell-off and the one that is weakening the Oil is..the global sell-off too…

Previously, we mentioned WTI on the 9th of October and back then, we were bullish because the price was bouncing from a legitimate horizontal support. Our view was later verified and the price broke that support and aimed lower. We broke two important horizontal lines : 73 (blue) and the 71.4 (pink). The price stopped on the mid-term up trendline (red) and that is our closest support at the moment.

Buyers are still relatively safe. The most important line for the long-term sentiment on the Oil is the black long-term up trendline. It is still far, so we have a space for a bearish correction, without threatening the major trend. For now, our outlook remains negative.