WTI Crude Oil Daily Analysis – July 10, 2017

Oil prices fell sharply on Friday to log their sixth weekly loss in the past seven weeks, as concerns over a glut in the market continued to weigh on sentiment.

Baker Hughes announced on Friday that U.S. drillers added seven oil rigs in the week to July 7. This brings the total count up to 763, the most since April 2015

Russia, which is cooperating with OPEC in a deal to curtail production, is all set to consider revising parameters of the deal if required.

Technical Outlook

Crude oil prices moved lower during the last weekend closure. As per my technical view, last week’s low prices serve as the major support. Once it breaks below then it would travel to touch fresh low at $40. The overall market is seen to exhibit a bearish sentiment. It is advisable to maintain strict stop loss at every entry level.

Today crude oil prices can be expected to give a pullback to reach $44.83-46 level as the short covering activities may possibly create “Bullish Megaphone chart pattern” in the bottom place. As depicted in the picture where support slope line will be a major support in upcoming trading session. Once it breaks the support slope line, then this formation will be invalid and the downside trend is expected to reach $42-$40 level.