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Oil turns lower but settles above $37.00/bbl

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Crude oil prices stalled their advances after extending to fresh weekly highs at the beginning of the day, and finally turned south, as speculative interest took profits on mounting uncertainty over the upcoming Doha meeting's result.

    West Texas Intermediate crude oil futures traded as high as $38.27 a barrel before shedding a full dollar, to settle at $37.26/bbl, down 1.3% on the day.

    WTI technical perspective


    “The daily chart suggests that the upward potential remains limited, as the latest rally stalled below its 20 SMA, whilst the technical indicators have resumed their declines after a failed attempt to break above their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, however, a positive tone persists, as the commodity met buying interest on a decline down to its 20 SMA, whilst the technical indicators are currently heading north, having corrected overbought levels earlier in the day.”

    “At this point, oil needs to advance beyond 39.20, the 23.6% retracement of its latest bullish run, to confirm a firmer recovery towards 40.00 and beyond for the upcoming sessions,” Bednarik added.

    Support levels: 36.90 36.20 35.50. Resistance levels: 38.30 39.20 40.10.
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