Oil Prices Plummeted -7% on Friday To Touch The Year's Nadir
On Friday, oil prices dropped to their lowest level in almost a year. West Texas Intermediate crude briefly plunged about -7% to $50.60 a barrel, its weakest price since Oct. 12, 2017. International benchmark Brent crude price fell -4.9% to around $59.52 a barrel at 9:44 a.m. ET.
Oil prices are down around -20% so far this month. Reports of a possible production cut by OPEC in December is apparently failing to boost prices of crude futures. Traders/investors are probably expecting the pace of oil demand growth to fall short of supply. The International Energy Agency (IEA) recently projected that non-OPEC output alone would climb to 2.3 million barrels per day (bpd) this year, while global supply has already been climbing so far in 2018. The IEA expects demand in 2019 to grow at a rate of 1.3 million bpd, revising down its previous forecast of 1.5 million bpd. Meanwhile, U.S. President Donald Trump has been urging OPEC not to cut production next month as he is apparently in favor of lower oil prices.
Momentum Indicator for WTID turns positive, indicating new upward trend
WTID saw its Momentum Indicator move above the 0 level on November 29, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator turned positive. In of the 35 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for WTID just turned positive on December 02, 2024. Looking at past instances where WTID's MACD turned positive, the stock continued to rise in of 20 cases over the following month. The odds of a continued upward trend are .
WTID moved above its 50-day moving average on December 04, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for WTID crossed bullishly above the 50-day moving average on December 11, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 7 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WTID advanced for three days, in of 139 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
WTID broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for WTID entered a downward trend on December 09, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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