WTI oil technical analysis:

Oil prices recorded their sharpest daily decline in the past three months during Wednesday's session, falling by approximately 9%. As a result, prices lost several important previous support levels, most notably the $89 per barrel level. This decline can be summarised from a technical perspective in the following key points:

  1. 1.Prices broke below the support of an ascending trendline extending from the beginning of last July.
  2. Prices breached a previous support level and low at $89. Continued trading below this level could signal further downside.
  3. The RSI also broke below an important support level at 45, within a Head and Shoulders pattern.
  4. Finally, prices broke below the 100-session moving average.

We can therefore see that prices have breached several support levels, raising the question: Is oil now under selling pressure?

Time: Daily, Tools: SMA 100:Time: Daily, Tools: SMA 100:

WTI oil fundamental analysis:

The decline in the US dollar and the Democrats' strong performance in the midterm elections reduced the likelihood of geopolitical escalation, pushing oil prices to their lowest levels since the end of last August. This raises an important question: Will the election results indeed influence the US administration's decisions and encourage all parties to pursue political solutions rather than escalation, particularly as risk appetite returns to global markets?