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Oil gains 5% and hits fresh 2016 high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Crude oil prices recovered the ground lost on Tuesday, WTI moving to a fresh high for the year of $38.51 a barrel on the back of decreasing US stockpiles which boosted hopes of a continued advance in prices.

    The US EIA reported that crude stockpiles rose by 3.9 million barrels to nearly 522 million barrels. The surprise came from gasoline investors, which fell by 4.5 million barrels, much more than the expected 1.4 million. Also, late Tuesday the American Petroleum Institute reported an oil inventory of 4.4 million barrels for the week, against previous 9.9 million build.

    WTI technical perspective

    “West Texas Intermediate crude oil trades above $ 38.00 by the end of the US session, and the daily chart shows that the technical indicators have resumed their advances after a limited downward corrective move near overbought readings, while the price is well above a 100 SMA,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the commodity has met buying interest on dips towards a bullish 20 SMA, whilst the technical indicators have bounced from their mid-lines, and retain the bullish tone.”

    Support levels: 37.40 36.60 36.05. Resistance levels: 38.50 39.20 40.00.
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