Sharp Drop in Oil Prices After US Midterm Elections

XOM declined 9.4% in the last 24 hours to 168.02, with its RSI at 19.8, placing it in oversold territory. The MACD is below its signal line and negative, and the price is significantly below its SMA20 and SMA50; the technical outlook is weak. The sharp drop in oil prices in the news headline is a fundamental pressure factor for the energy stock and may sustain selling pressure in the short term. However, with the RSI at an oversold level, bargain hunting could create short-term volatility. Therefore, while the direction is biased downward, I maintain medium confidence.

WTI crude fell sharply by more than 8% in 24 hours, dropping below $88; with RSI at 15.7, it is in oversold territory, and MACD is negative below its signal line. The price is significantly below SMA20 and SMA50, confirming a downtrend in the short term. Post-US midterm election news flow could heighten supply/demand uncertainty and fuel selling pressure. However, oversold conditions may lead to short-term bargain hunting and volatility. Therefore, the 1-3 day outlook is bearish but with low-to-medium confidence; sudden spikes should not be ignored.

Brent fell sharply by 8.8% over the past 24 hours, closing at $94.46. The 14‑period Relative Strength Index (RSI) sits at 15.2, placing the benchmark well within oversold territory. The MACD is negative and below its signal line, while the price remains markedly below both the 20‑period and 50‑period simple moving averages, indicating a short‑term downtrend. The headline confirms the decline, yet the extreme oversold conditions could provide a foundation for a rebound. Consequently, a downward bias is expected to persist over the next one to three days, with only limited selling or a flat, choppy range anticipated at low confidence levels. Caution is advised due to the risk of a short‑term pullback following the steep decline.

CVX has already fallen 8.5% in 24 hours and is in oversold territory with an RSI of 16.6; short-term rebound buying may be seen at such levels. However, the news points to a sharp drop in oil prices, which weakens the fundamental outlook for integrated oil companies. The price is clearly below the SMA20 and SMA50, while the MACD is negative and below the signal line; the trend is downward. Due to the oversold condition, the pace of the decline may slow, so I maintain a downward direction but with medium confidence. In the short term, selling pressure may persist, and rebound buying may remain limited.