WTI falls for the third day in a row, targeting $ 70.00

• Oil falls for the third day in a row, due to the general strength of the US dollar.
• Market sentiment remains pessimistic, weighing on stocks and commodities, benefiting safe-haven flows.
• WTI’s technical outlook is tilted higher.

The oil it is down for the third day in a row. The WTI It is trading around $ 70.72, down 1.49%, at the time of writing.

WTI falls on pessimistic market sentiment

Market sentiment remains pessimistic, with the US dollar trading higher, stocks and commodities lower as the market awaits the Fed’s decision later this week. In addition, China’s Evergrande, the second largest real estate developer, is in financial difficulties, which is weighing on the market mood.

The rise of oil rigs in the United States and expectations of the possibility of resuming operations at onshore and offshore facilities in the Gulf of Mexico weighed on the WTI. Meanwhile, the US dollar index, which measures the value of the dollar against a basket of six pairs, is flat at 93.19, adding pressure on oil prices.

WTI Price Forecast: Technical Outlook

WTI is trading well above the daily moving averages, which suggests that the uptrend is intact. The recent drop could suggest that there is a correction in progress. The first support level would be $ 70.00. A daily close below the latter could pave the way for further losses. The next area of ​​demand would be the confluence of the 50- and 100-day moving averages (DMA), around $ 69.35. A break below that zone would expose the September 9 low at $ 67.56.

On the other hand, in the case of a daily close above $ 71.00, it could mean that WTI could resume its uptrend. The first rising supply zone would be $ 72.00. A decisive breakout could open the door to higher gains. The next resistance would be the September 15 high at $ 73.11.

The Relative Strength Index is at 55.30, heading slightly lower, but supports the bullish bias as it remains above the 50 midline.

Technical levels