FxWirePro: WTI Hits Multi-Year Lows After Retracing 88.6% Fibos, Take A Look At Hedging Setup

The prices of energy commodities have tanked considerably today, with WTI crude fell 8.68% to trade at $24.47 and Brent dropped by 4.93% trading at $.27.38 levels a barrel.

WTI crude oil price has plummeted from $65.62 levels to the recent lows of $24.46 levels.

Crude's price consolidation looks vulnerable, no traces of recovery after stern bearish candles, both leading oscillators (RSI & Stochastic curves) signal intensified selling momentum, while trend indicators substantiate prevailing downtrend to prolong further (refer daily chart).

It has breached below crucial supports of $55.02, 55.$54.08, $49.29 and $29.95 levels.

On a broader perspective, WTI prices have retraced more than 88.6% Fibonacci levels of the 2018 highs of $76.88 and 2016 lows of $26.08 levels (refer monthly chart).

Thereby, the major downtrend tumbles to multi-year’s lows, while both leading and lagging oscillators are also in tandem with the ongoing price slumps on this timeframe as well.

Trade recommendations: We also advocated derivatives trades on crude oil, shorts in CME WTI futures of April’2020 deliveries and longs in January’2020 month deliveries on hedging grounds seeing value at the current market pricing.