WTI further downside.. crucial week to test long-term trend..
Last week, market is concerned on additional crude oil supply from OPEC and Russia in 2H18. We expect WTI will pose further downside next week. And we expect next week is crucial to the medium-term uptrend of crude oil because:
i) WTI has never fallen below 100MA since early Sep. Currently, 100MA was around US$65.1.
ii) WTI has been growing under an uptrend channel and the lower boundary was around US$66.0.
Thus, we expect WTI will further go down and test the US$65-66 range, which is a key support range. As crude oil inventory remains below 5-year average, we remains our medium term positive view on WTI and expect WTI should find support at the US$65-66 level.
i) WTI has never fallen below 100MA since early Sep. Currently, 100MA was around US$65.1.
ii) WTI has been growing under an uptrend channel and the lower boundary was around US$66.0.
Thus, we expect WTI will further go down and test the US$65-66 range, which is a key support range. As crude oil inventory remains below 5-year average, we remains our medium term positive view on WTI and expect WTI should find support at the US$65-66 level.