- Will WTI Crude Oil Reach the Key Level of $67.00? Analysis Shows Further Losses Ahead
- MACD and Stochastics Indicate Bearish Trend
WTI crude oil futures have plummeted below the long-term descending trend line once again, hitting the crucial support level of $68.70. Since reaching a peak of $80.59 on January 15, the price has dropped over 14%, with technical indicators signaling even more significant declines. The MACD oscillator continues to show a negative trend below both its trigger and zero lines, while stochastics are in oversold territory, pointing downwards.
There is a possibility of further downside pressure pushing the commodity towards the key support level of $67.00, which has held strong since 2021. A breach below this level could lead to a continuation of the negative trend, potentially reaching a 17-month low of $65.70.
Conversely, a breakout above the diagonal line could attract investors towards the 20- and 50-day simple moving averages (SMAs) at $71.60 and $73.10. Further upside movement could target the 200-day SMA near the $73.95 barrier, instilling optimism for potential gains in the market.
In conclusion, the outlook for oil prices appears bearish in both the short and long term, with confirmation likely if the commodity falls below the critical level of $67.00.