Oil: Short-Term Sell (Update)
WTI Crude Oil Futures, 4-Hour Chart Analysis
The quick dip lower below crucial support today, following the failed rally above the $50 level yesterday, justifies the lowering of the initial stop-loss level. Yesterday’s highs serve as an optimal resistance just above $50 for the new level.
The re-test of the $47.10 is increasingly likely, as the bearish momentum remains strong. A possible break below the $47 level could open up the road to the crucial $44 support, as the growing US production numbers, and the questionable OPEC-cut extension continues to weigh heavily on the commodity.