Crude oil settles slightly lower after volatile day

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Crude oil prices traded in a roller-coaster this Monday, with WTI crude oil futures declining down to $40.39 at the beginning of the day, before bouncing sharply higher, up to $42.73. The bounce was underpinned by news coming from Saudi Arabia, as the government stated that it is willing to cooperate with non-OPEC crude producing countries and is ready to do whatever it takes to help stabilize the oil market.

    The commodity has consistently found buyers around the 40.00 psychological figure, but intraday gains are unable to hold beyond the 42.00 level since mid this month. WTI settled slightly lower at $41.75 a barrel, down 0.4% on the day.

    WTI technical perspective

    “The daily chart shows that the commodity remains well below a bearish 20 SMA and with the technical indicators barely correcting higher well below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price is hovering around a horizontal 20 SMA, whilst the technical indicators have turned lower around their mid-lines, lacking clear directional strength at the time being”.

    Support levels: 41.20 40.10 39.20 Resistance levels: 42.50 43.10 43.90.
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