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Oil snaps four-day winning streak

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Oil prices fell on Monday, snapping a four-session winning streak, weighed by poor Chinese economic data and diminishing hopes of an agreement between OPEC and non-OPEC producers to cut output.

    Brent closed barely above $34.00 a barrel, while WTI crude oil futures traded as low as $31.27 a barrel mid-American session, before settling at $31.62 a barrel, 6% down.

    WTI technical perspective

    “From a technical point of view, the price is currently trading around the 38.2% retracement of the latest daily decline, at 31.65, while the decline stalled a few cents above a horizontal 20 SMA in the daily chart. In the same chart, the technical indicators have turned south, with the RSI indicator already in bearish territory, all of which suggests further slides are likely”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart, shows that the technical indicators head sharply lower below their mid-lines, while the price is well below the 20 SMA. A break below the mentioned daily low should signal further declines towards the 30.00 figure.”

    Support levels: 31.20 30.60 30.00. Resistance levels: 32.30 32.90 33.70.
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