December micro WTI crude oil (CLZ25) futures present a selling opportunity on more price weakness.
See on the daily bar chart for December crude oil futures that price action has been choppy and sideways but the selloff from last week’s seven-week high has given the bears fresh downside momentum. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bearish posture as the blue MACD line has just crossed below the red trigger line.
Fundamentally, there are several analytical and brokerage firms that are forecasting a global crude oil glut in the coming months. One firm is forecasting crude oil prices to drop into the $50-a-barrel range in the coming quarters on expectations for “punishing oversupply” as output expands. Macquarie Group analysts remain “fundamentally bearish on the energy complex” due to crude-supply growth from OPEC-plus and drillers outside the group. Last month, the International Energy Agency projected that world output would exceed consumption by an average of 3.33 million barrels a day in 2026. That would be a historic overhang in annual terms.
A move in December crude oil futures below strong chart support at the August low of $60.57 would give the bears more power and it would also become a selling opportunity in the December micro WTI crude oil. The downside price objective would be $53.00 or below. Technical resistance, for which to place a protective buy stop just above, is located at $64.00.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
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