Crude oil prices retraced from its recent highs, ending the day in the red for the first time in over a week. The commodity rallied at the beginning of the day, as despite Chinese trade balance figures were below expectations, data also showed that China’s oil imports hit a record high of 8.0 million barrels per day during February.
West Texas Intermediate futures hit $38.38 a barrel, but fell two dollars after fresh signals of global oversupply, ahead of US oil stockpiles data.
WTI technical perspective
“The black gold neared $36.00 a barrel by the end of the US session, and the daily chart shows that the price is still above its 100 SMA, currently around 34.60, although the technical indicators have turned south, retreating from overbought territory,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price is pressuring a bullish 20 SMA, whilst the technical indicators are poised to cross their mid-lines towards the downside. Monday’s low at 36.07 comes as the immediate support, with a break below probably fueling the negative tone and exposing the commodity to a test of the mentioned 34.60 level.”
Support levels: 36.06 35.30 34.60. Resistance levels: 37.20 37.90 38.40.
(Market News Provided by FXstreet)