Crude oil prices are seeing continuous pressure to the downside as oil investors try to keep up with ever rising US supplies in addition to massive selling across broader markets as investors shy away from risky assets. WTI prices which were printing multi-year highs on fear surrounding the upcoming US sanctions on Iran, are now heading steadily lower as US production numbers roll over the current supply lines, suggesting another roller coaster ride ahead.
Crude oil prices printed new lows during yesterday's session hitting $65.31 but quickly recovered above the $66 level. A huge divergence took place between the momentum and the price that shows a build up in the momentum but did not reflect in the price as we can see on the RSI. That is why we will be focusing on the 68.39 level as we expect a moderate recovery.
Support: 67.00 / 66.77
Resistance: 68.39 / 69.50