Oil falls just over 3% to its lowest level since June 29
The technical history of oil has been very interesting throughout the August trading so far. Buyers maintained a break above $ 40, but were unable to firmly break through the August 5 high of $ 43.52 despite holding above the 200-day MA (blue line ).
The exhaustion in keeping the price action above this level along with some additional uncertainty surrounding the outlook – lower demand – has slowly weighed on oil and we are now potentially starting to see a stronger correction take hold. produce.
The breakout below the 200 day MA and close below $ 40 yesterday was a key technical signal and sellers are trying to run with this as risk skids today.
European stocks are dragged down as US futures also turn the tail, with S&P 500 futures having risen about 0.7% earlier and are now down about 0.2% at the end of the day. square.
Futures on the Nasdaq were stable at one point in early trading today, but are now down around 1.4%.
The sour mood is also weighing on oil a bit as the price now falls below support from July 10-30 lows @ $ 38.54-72 to its lowest since June 29.
The June 26 low at $ 37.01 will offer some support to buyers if the drive’s decline continues, but the 100-day MA (red line) will be a key technical test overall to see how much this recoil will go.