WTI CRUDE OIL - Posted Sharp Red Day - Dropped 4% - 08/02/2017 (GMT)

The West Texas Intermediate crude oil plummeted more than 4% during Tuesday’s trading period after the reports that OPEC increased output despite the group’s pact to curb production. The price recorded a bullish month and snapped the four red months as it surged more than 13% in just one month.

Moreover, the oil had a strong rebound on the $50.40 resistance barrier which overlaps with the 200-day SMA whilst the price is now approaching our aforementioned support barrier at $47.70 (see technical analysis here: http://bit.ly/2u2WvRk). The technical structure suggests further downside movement, while both are sloping to the downside and lost its strong momentum. The RSI indicator is pointing down to 50 level and the MACD oscillator is weakening, whilst is still developing above the trigger line.