Looking at the West Texas Intermediate (WTI) crude oil futures contract on the above MT 4 four (4) hour chart, price action has fallen below $41 per barrel and below $40.80 per barrel. The WTI contract is losing ground within and ascending triangle.
Currently, during the earlier Asian trade session on Tuesday, the WTI crude oil futures contract is challenging the bottom of the above mentioned ascending triangle and the short term fifty (50) hour simple moving average (HMA). This ascending triangle has been in play since 2 October.
Looking at the economic calendar, the European Union will release their monthly current account data. Germany will publish their monthly factory gate index data. This is also known as the producer price index. The United Kingdom and Canada have no economic data scheduled to be released today.
The United States will releasing monthly housing starts data as well as monthly building permits data.
Daily WTI Crude Oil Technical Analysis
Looking at price action on the above West Texas Intermediate (WTI) crude oil futures four hour chart, the relative strength index (RSI) is normal as price action challenges the 50 day HMA lining up at $40.75 per barrel.
This is the first layer of technical support to watch with the two hundred (200) hour simple moving average lining up at $40.20 the next downside barrier. Below the 200 HMA, the next layer of technical support lines up at key number of $39.70 per barrel.
On the upside, the upper line of the ascending triangle is the first layer of technical resistance. This upside barrier lines up at $41.48 per barrel. A daily close above this barrier brings the 4 September high price point at $42.10 per barrel into focus.
A sustained close above this level will open the door for the WTI crude contract to challenge the monthly September high price point at $43.55 per barrel. The next upside barrier is at the August monthly high price point at $43.85 per barrel.