FX.co ★ Technical review for WTI: downward correction may be limited

Crude oil prices remain heavily influenced by political and economic factors. This includes the tension between Russia and the US, as well as the potential drop in demand for energy resources in the face of global recession.

Technically, WTI is in range, trading below the strong resistance level of 109.35. Although that level is yet to be overcome and dollar may correct upwards after yesterday's fall, oil could experience a local price decline.

technical picture:

The quote is above the middle line of the Bollinger indicator, at the SMA 5 and above the SMA 14. The relative strength index (RSI) is above 50% and is indicating a possible price reversal, while the stochastic indicator is in the overbought zone .

Possible dynamics:

Oil may dip to 105.50 if it fails to break through 109.35.