FxWirePro: WTI crude futures breaking all crucial supports - all chances to hit 40.45

WTI crude is attempting to beach supports at 41.75 levels which has already tested this level as crucial point of demand and supply several times in the past (see blue coloured circled areas).

For now, we reckon the commodity price may drag up to 40.45 if it manages to break below decisively. We have been bearish on this commodity as the yesterday's slumps confirmed by substantial volumes after crude inventory spikes and advisable to sell on every rally.

The selling indications are bolstering as there seems to be a factor called volumes mounting on every price declines. Hence, we reckon the previous rallies were only due to short coverings and certainly not to be regarded as bullish trend, instead long lasting bearish trend to prevail.

RSI is showing bearish convergence to the price declines (currently RSI 14 trending at 36.1601 while articulating).

While slow stochastic approached oversold territory but there are no convincing hints of %K crossover (currently %D line at 5.0506 & %K line at 6.0172).

In between this down streaks, we spotted out the series bearish candle like doji on daily chart at around 44.21 and spot price is fallen way below 10 DMA curve on daily charts.

So overall we could foresee all chances of retesting 40.45, as a strong support if it fails to hold onto 41.75. Thus, on a speculation basis it is advisable to short futures at spot levels for immediate targets at 40.45.