WTI Crude Oil Testing Downside

WTI Crude Oil: testing monthly lows

• Ichimoku Cloud bearish;
• ADX and DI bearish;
• RSI oversold.

The price of WTI Crude Oil dropped to monthly lows slightly above $103.0 per barrel. The 8-days plunge almost reached $20 per barrel (16.4%), which led to a complete reversal of all of the technical indicators. On Tuesday, the black gold was consolidating losses around the Ichimoku Conversion line, and even breached the resistance from below. However, the recovery failed, and the price of oil suffered another wave of the sell-off. 

The Ichimoku leading span is increasing the negative surplus, suggesting lower prices. The ADX and DI indicator has a rising mainline, pointing to a stronger momentum, and the red line well above the green one, signaling a bearish sentiment. The RSI oscillator is about to enter the oversold zone. WTI Crude is nearing a psychological round-figure level of $100 per barrel, and if breached, the sell-off might even accelerate.                                                      

Pivot points:

R1: 107.15 (Ichimoku Conversion line);

R2: 111.06 (Ichimoku Base line);

S1: 100.00 (round-figure support);

S2: 95.00 (extension).