WTI slid yesterday and managed to overcome the 36.35 support (now turned into resistance) barrier. I would now expect the price to continue lower and perhaps challenge the 35.30 (S1) line, marked by the low of the 21st of December. Our short-term oscillators reveal downside momentum and support that WTI could continue lower, at least in the short-run. The RSI stands below its 50 line and looks to be headed towards 30, while the MACD, lies below both its zero and signal lines, pointing down. On the daily chart, I see that WTI has been printing lower peaks and lower troughs since the 9th of October. As a result, I would consider the longer-term picture to stay negative as well. However, I would get more confident on the continuation of the overall downtrend if I see a clear close below the psychological zone of 35.00 (S2).
• Support: 35.30 (S1), 35.00 (S2), 34.50 (S3)
• Resistance: 36.35 (R1), 37.15 (R2), 38.00 (R3)