WTI CRUDE OIL - WTI Plummeted Nearly 4% - 11/01/2016 (GMT)

The West Texas Intermediate (WTI) plummeted nearly 4% yesterday below $47.00 a barrel. Investors remain nervous about next month’s OPEC announcement as a non-OPEC oil producing countries continue to clash. The oil recorded the third red day in a row and plunged below the 50-daily SMA and the 200-SMA on the 4-hour chart. The oil had a pullback on the $46.90 support level which is slightly above the 100-daily SMA and is currently developing near the $47.30 price level.

On the short-term timeframe, the technical indicators are biased lower after entering the negative territory. The MACD oscillator is moving below both, its zero and trigger lines, suggesting a stronger bearish momentum. In addition, the RSI indicator is moving in an oversold area near the 30 level. Therefore, a break below the support area at $46.90 - $ 47.30 will expose the price to $46.40 barrier or moreover to $44.35 obstacle. On the other, an upward move is possible until the $48.45 resistance level.