Crude oil down about 13% this week

The price of WTI

WTI

WTI is shorthand for West Texas Intermediate crude oil. WTI is a type of crude oil that serves as a benchmark in the price of oil. It is a light, sweet crude oil that is extracted from the West Texas region of the United States, including the Permian Basin. WTI crude oil is considered a high quality oil due to its low sulfur content and high gasoline and diesel fuel yields when refined. It is used as a benchmark for pricing other types of crude oil, and the price of WTI crude o

WTI is shorthand for West Texas Intermediate crude oil. WTI is a type of crude oil that serves as a benchmark in the price of oil. It is a light, sweet crude oil that is extracted from the West Texas region of the United States, including the Permian Basin. WTI crude oil is considered a high quality oil due to its low sulfur content and high gasoline and diesel fuel yields when refined. It is used as a benchmark for pricing other types of crude oil, and the price of WTI crude o
Read this term raw futures contracts

Futures contracts

A futures or futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specific time in the future. It should be noted that the parties do not know each other. These transactions generally involve commodities or other securities involving the buying and selling at a forward or predetermined price. Futures contracts also adhere to a delivery date, which specifies the date of delivery and payment. Compared to other forms of investment, futures contracts are much more complex because

A futures or futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specific time in the future. It should be noted that the parties do not know each other. These transactions generally involve commodities or other securities involving the buying and selling at a forward or predetermined price. Futures contracts also adhere to a delivery date, which specifies the date of delivery and payment. Compared to other forms of investment, futures contracts are much more complex because
Read this term hit a new weekly low of $65.38. This eliminated the low from the start of the week at $65.65. Looking at the weekly chart, the price is also crossing below its 200-week moving average at $66.14. However, the price rebounded and is currently trading at $66.62.

So, for the third time this week, a look below the 200 week moving average has found buyers. Traders are a little reluctant.

One of the reasons for the rebound is that the price is down around 13% this week. This is close to the -12.84% decline from the week of March 28, 2022. You would have to go all the way to April 2022 to have a week that saw a bigger decline. The market is therefore a bit oversold. Traders often look to get a foothold in the water when they feel the market is oversold AND the price is near a key technical level.

The 200-week MA is a key long-term MA level, the price has not been at the 200-week MA since the week of February 1, 2021. So it’s been over 2 years. A year ago, in March 2022, the price of crude is also down from a high of $130.50.

For fans of relative strength, the 14-bar RSI on the weekly is at 38.25. This deviates from the December RSI low at 36.40 and the September 2022 RSI low at 34.95. The thing about the RSI is that it can always go down (and it hasn’t been below 30 since April 2020). Hence the need to use another technical level (like the MA 200 weeks) to rely on. If the price started heading towards $65, there might be more stops and a more downward turn.