Brent futures hit 9-day high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Brent futures hit a 9-day high of USD 31.33/barrel before trimming gains slightly to trade around USD 31.00 handle.

    Correction underway

    A technical correction is underway as oil was oversold. A lesser than expected rise in the US inventories triggered a profit taking on the shorts ahead of the weekend. Both the benchmarks – Brent and WTI – now trade 5% higher on the day.

    However, there exists a risk of turnaround as nothing has changed with regards to excess supply situation.

    Brent Technical Levels

    The immediate resistance is seen at 32.24 (4-hr 100-MA), above which the prices could test 34.69 (Jan 8 high). On the other hand, a break below 29.64 (hourly 200-MA) could see the prices test the hourly 100-MA at 28.79.
    For more information, read our latest forex news.

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