FxWirePro: WTI crude bears resume as shooting star to evidence more slumps ahead of EIA inventory

Technical Glance:

The recent intermediary rallies have tested resistance at 49.09 levels and been rejecting prices thereafter (see daily chart).

"Shooting star" is appeared at peaks of 47.28 level that has evidenced its bearish effects and signals some weakness as leading oscillators converge prevailing price dips.

On 4H charts, RSI and stochastic oscillators have been converging to the prevailing price declines which are deemed as a reversal coupled with daily technicals.

RSI signaling clear convergence with the dipping prices (currently RSI 14 trending below 55 levels while articulating).

While, %D crossover sustains even at 60 levels on slow stochastic (currently %D line at 68.5869 & %K line at 47.8261), so overall we see selling pressures in this commodity at the current stage.

Current prices slid below 7DMA on daily charts, while, 7DMA crosses below 21DMA which is a sell signal.

Trade tips:

At current juncture contemplating above bearish indications, on speculative grounds we recommend shorting near month futures for target towards $44.75 levels.

These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the futures contract.

The U.S. Energy Information Administration will release its weekly report on oil supply at 14:30GMT amid expectations for an increase of 921,000 barrels.

Crude price for October delivery on the NYME slumped to a session low of $45.75 a barrel, a level not seen since August 15. It was last at $46.16 by 4:04AM ET (08:04GMT), down 19 cents, or 0.41%.