Oil Prices Start the Week with Sharp Decline

The sharp decline in oil prices at the start of the week may support a short-term downward movement. The RSI14 indicator is at 56.65, which is not in the overbought or oversold region. The MACD and MACD signal lines are positive, but no crossover has occurred recently. The last closing price is above the 20 and 50-day simple moving averages. This situation indicates that prices may show a short-term downward movement, but this decline may be limited until it reaches a strong support zone.

WTI oil prices began the week with a sharp decline. The RSI14 indicator is at the 29 level, indicating overselling. However, the 24-hour percentage change is -2.87, suggesting potential for further decline in the short term. The MACD and MACD signal lines are also in the negative region. Therefore, it is anticipated that prices may drop further in the short term.

The sharp decline in oil prices could directly pressure energy stocks such as XOM. Although the RSI is in neutral territory (51) on technical indicators, the MACD is issuing a sell signal, and the price is slightly below the SMA20 and SMA50. In the short term, this negative news flow could reinforce the current weak momentum. However, the downside is expected to be limited, as the stock rose 1.4% in the last session and support levels are nearby. Given investors' high sensitivity to oil supply-demand news, the initial reaction may be to sell.

The sharp decline in oil prices could directly pressure energy stocks such as CVX. An RSI above 70 indicates overbought conditions, increasing the likelihood of a short-term pullback. While the MACD remains positive, momentum is expected to weaken. Following a strong rally over the past 24 hours, profit-taking may emerge alongside the news flow. Therefore, the short-term direction could be downward, though the impact may remain limited.