Bullish Speculation Fades and Crude Oil Keeps Falling

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Summary:

Today's oscillation range will be 80.0-82.5, and it is better to buy low and sell high.

SELL WTI

EXP

EXPIRED

82.500

Entry Price

80.500

83.000

102.213 -0.273 -0.27%

Pips

EXPIRED

80.500

80.960

Exit Price

82.500

Entry Price

83.000

Fundamentals

During Tuesday's (July 9th) Asian session, WTI oscillated slightly, and it is now trading at 81.5.

Yesterday, crude oil extended declined and closed with a big bear candle. There was no big rally during the session. This was mainly because the previous bullish speculation faded and Atlantic Hurricane Beryl weakened. So far, 121 counties in Texas entered a state of disaster with more than 480,000 residents losing power connections. However, it does not have a significant impact on the oil production infrastructure in the Gulf of Mexico, and Beryl is expected to weaken and be downgraded on Tuesday.

Tonight, the focus will be on the inventory data. If the inventory rises, crude oil prices will keep plunging, and the support should be at 80. Otherwise, WTI may move up to test the resistance at 82.5.

Technical Analysis

Crude oil plunged on Monday and closed with a big bear candle, dropping below the strong support level of 82.5. In the U.S. session, it failed several times to stand above 82.5. Therefore, crude oil is under a weak trend, and it may turn bearish this week.

Technically, after falling for several days, crude oil has turned to a bearish trend in the 1D timeframe. In the 4H chart, it plummets continuously and falls below the Bollinger lower band. Meanwhile, the SMAs are heading downward, so the price won't ascend much. As it is fluctuating at high levels now, if it fails to rise further today, it may plunge this week. We should focus on the resistance at 82.5 and 83, and try to sell WTI if it fails to cross above them.

Bullish Speculation Fades and Crude Oil Keeps Falling_1

Trading Recommendations

Trading direction: Sell

Entry price: 82.50

Target price: 80.50

Stop loss: 83.00

Support: 82.00/80.00

Resistance: 82.50/83.80

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