- Oil prices drop 7% from 73.30 as bearish trend continues
- 200-day SMA remains flat
- MACD and stochastics signal further decline
Oil prices have experienced a significant 7% decline in recent days following a retreat from the 73.30 resistance level.
The commodity is currently trading below the 20-day simple moving average (SMA) with potential support at the 17-month low of 65.70. Further downside could target the April 2023 low of 63.60.
On the upside, a reversal of recent losses could push prices towards the 73.30 barrier and the 50-day SMA at 74.30.
A breakout above the short-term downtrend line may propel oil towards the flat 200-day SMA at 77.75, shifting the bias to neutral.
Technical indicators show the MACD maintaining its negative momentum below the zero line, while the stochastic oscillator is descending from the overbought territory at 80.
To summarize, oil prices have been in a bearish trend since July, with a potential shift to bullish only on a move above the 84.70 resistance level.