WTI steep slumps after shooting star – FxWirePro’s short hedges come handy

Crude oil prices continued its bearish streaks, amid mild rallies today, WTI collapsed this week as well to $56.29 levels noting one of the largest weekly downward moves of the year at -$3.42/bbl or -5.72%. 

Before proceed further, let’s just quickly glance through below weblink where we advocated short hedges:

https://www.econotimes.com/FxWirePro-WTI-Crude-Edgy-at-50-Fibos-on-Shooting-Stars-Trade-Tunnel-Spreads-and-Short-Hedge-1444241

Had you deployed those WTI futures positions (when crude was trading at 71.35 levels), you would have considerably saved your crude exposures by now.

Last month, international oil benchmark Brent dropped by around $10/bbl as physical markets remained oversupplied from elevated production from OPEC whilst Iranian supply was still in the market despite reduction in reported exports.

Well, ever since the WTI crude price chart formed shooting star at peaks of rallies, bears have constantly nudged prices below 7DMAs (refer daily chart), for now, more dips seem to be on cards upon breach below strong support as both leading & lagging indicators still signal weakness.

Please be noted that on weekly basis also, steep slumps are observed well below EMAs upon shooting star formation at $74.24 levels, more weakness is foreseen on this timeframe as well as both leading oscillators (RSI & stochastic curves) indicate faded strength & intensified bearish momentum and lagging indicators (EMA & MACD) signal downtrend continuation.

Currently, at spot reference: $56.32 levels, we wish to uphold WTI short futures positions for arresting further downside risks.

Currency Strength Index: FxWirePro's hourly USD is inching at -34 (which is bearish), while articulating (at 13:19 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex