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WTI trims losses, back above $33.00

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - After bottoming out in fresh multi-year lows in the $32.00 neighbourhood, crude oil prices are now extending the rebound to the $33.50 area per barrel.

    WTI bounces off $32.00

    The downside pressure around crude oil prices seems to have somehow alleviated at the moment, as the barrel of West Texas Intermediate is coming up after testing the key support at $32.00 the figure during the morning in Europe.

    Today’s turmoil in the Chinese stock markets (Shanghai Comp. down 7%) has been weighing on sentiment since early in the Asian session, triggering a wave of risk aversion and sparking a sell-off in the global equity markets and commodities. Fears of a slowdown in the Chinese economy coupled with increasing concerns over the supply glut have been the main drivers behind the slump in crude prices.

    WTI levels to watch

    At the moment the barrel of WTI is losing 2.36% at $33.17 and a breakdown of $30.00 (psychological level) would aim for $26.65 (monthly low Sep.2003) and finally $25.04 (monthly low Apr.2003). On the other hand, the next resistance aligns at $38.39 (high Jan.4) followed by $40.42 (55-day sma) and then $41.48 (downtrend from $50.92).
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