Having ended Thursday at $76.28, WTI crude dropped to $73.6, hitting its lowest point in 10 months. It later recovered 64 cents and trades at $74.24.
Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that first developed in 1978, the relative strength index (RSI) is a momentum oscillator that measures both the speed and rate of change in price movements within a market — measured as a 0-100 index. In WTI crude oil's case, the RSI has fallen below 30, indicating the asset is oversold. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $73.46, a low enough level to, generally, suggest that West Texas crude is trading below its fair value. Technical chart analysis shows WTI crude broke through the $75.03 support line and dropped 79 cents below it.
With market volatility ebbing, the current technical outlook indicates WTI crude oil will remain range-bound for the immediate future.
Taking a look at other Energy commodities, negative performances are evident as Natural Gas is down 40.4 cents from the beginning of the session and now trades around $6.62. Brent Crude Oil is down to $81.33, losing $2.3, after closing at $83.63 in the preceding trading session. Heating Oil is down 3.41 cents from the beginning of the session and now trades around $3.21.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as projections for United States Consumer Confidence are set for a continuation of decline with 100 while previous data was 102.5; data will be released tomorrow at 15:00 UTC.
West Texas crude has shed 33.71% over the past six months.