Oil falls sharply and hits 2 ½-month lows

Crude oil prices fell sharply Monday, with West Texas Intermediate crude oil futures falling to a nearly 3-month low, weighted by dollar’s strength and risk aversion coming from the Brexit.

WTI for August delivery settled at $46.33 a barrel on the New York Mercantile Exchange, down $1.31, or 2.8%, having set a session low of  $45.83 a barrel.

WTI technical view

“WTI seems overall poised to extend its decline during the upcoming days, as in the daily chart, the 20 SMA has begun turning south well above the current level, whilst the RSI indicator accelerates south around 40 and the Momentum indicator consolidates below its 100 line,” said Valeria Bednarik, chief analyst at FXStreet.”In the 4 hours chart, is the Momentum indicator which heads strongly lower near oversold levels, whilst the RSI indicator consolidates around 32, as the 20 SMA accelerates its decline below the 100 and 200 SMAs far above the current level, in line with the longer term outlook. A break below the critical 45.00 level could ignite a steeper decline as speculative stops get triggered.”

Support levels: 45.80 45.20 44.60 Resistance levels: 46.70 47.50 48.20.