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Oil hovers near cycle lows, below $30.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Crude oil prices gapped lower at the weekly opening, with US sweet, light crude falling down to $28.36 a barrel following news international as part of a nuclear deal.

    The news mean that the Islamic Republic can pump around half a million barrels a day, adding to the ongoing global glut.

    Brent crude fell as low as $27.67 a barrel, its lowest since 2003, before recovering to trade at $28.86. US WTI, bounced to an intraday high of $29.83, but fell below the 29.00 mark by the end of the day, retaining the bearish tone.

    WTI technical view

    “Technically, the daily candle presents a long upper wick, which reflects strong speculative selling interest waiting for spikes to join the party. The technical indicators in the same chart have extended further lower within oversold territory, and are currently flat, consolidating rather than signaling an upcoming upward move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price retreated from below a strongly bearish 20 SMA, while the Momentum indicator extended its decline to fresh lows, and the RSI indicator resumed its decline, both in negative territory, supporting a continued decline for this Tuesday”.

    Support levels: 28.50 27.70 27.10. Resistance levels: 29.90 30.60 31.40.
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