Crude oil markets try to rise initially during the trading session on Thursday but around the $57.50 level the sellers stepped back in turned around to show signs of weakness yet again. This is a market that continues to struggle in general, as the fundamental outlook for the market is getting weaker and weaker. WTI plunged once again yesterday to close below the important $55 psychological support level.
WTI still tries to pullback from time to time but every rally seems to be an opportunity to short sell for now, as prices are struggling to break the 30-period moving average on the hourly chart as shown on the chart below. WTI plunged again yesterday closing below the important key support level at $55. However, this morning crude seems to be pulling back up yet again to the 30-period moving average around $56. Looking at the 4-hour chart, we can see that the important support level at the 200-period moving average has also been breached creating chances for additional free falling as the next support level is around the $51 to $51.50 zone. This market on the medium to long-term is thus clearly bearish.
Support: 55.00 / 51.50
Resistance: 58.25/ 59.99