West Texas Intermediate crude took a jump off a cliff on the trade war noise which has thrown the technicals out of shape. Indeed, we had the largest front-month contract percentage decline since Feb. 4, 2015 and the worst settlement since June 19 of this year. So, technically, the price is now well below the daily moving averages.
The 61.8% Fibo retracement of the June to mid-July swing lows and highs was broken and the price actually dropped below there but settled around it on Wall Street’s close. Bears can target the 50 handle on an escalation of the trade wars and 58.40 on the wide upside on a recovery of risk appetite.
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