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WTI retraces weekly gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Crude oil prices plummeted on Wednesday, retracing the previous day’s strong rally, after the latest EIA report showed that crude stockpiles in the country increased by 2.8 million barrels last week, the sixth straight increase.

    The commodity gave back all of its weekly gains and settled more than 3% down at $46.32, with the decline also fueled by dollar's strength.

    WTI technical view

    “Technically, the daily chart shows that the price failed to extend beyond the 61.8% retracement of its latest daily decline, discouraging speculative buying. In the same chart, the price is back below its 100 DMA whilst the Momentum indicator has turned flat before establishing above its 100 level, whilst the RSI indicator has turned south around its mid-line, increasing the risk of further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has extended below its 20 SMA while the RSI indicator heads strongly south around 47, supporting the longer term view. The immediate support stands at 45.95, the 38.2% retracement of the same decline, with a break below it required to confirm a bearish continuation”.

    Bednarik sees next support levels at 45.95, 45.30 and 44.60, while she places resistances at 46.65, 47.10 and 48.00.
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