Oil extends recovery to near $43.00

FXStreet (Córdoba) – Crude oil rose sharply on Thursday and climbed nearly 10% to an 8-day high just below $43.00 a barrel helped by a comeback in stocks and following a report that Venezuela has asked the OPEC to hold an emergency meeting on falling oil prices.

Crude oil rallied to a high of $42.97 on Thursday after posting multi-year lows sub $38.00/bbl earlier this week. At time of writing, oil is trading around $42.50 a barrel.

Oil technical perspective

“Daily basis, the price advanced up to its 20 SMA, from where it eased back towards the 42.00 level where it stands by the end of the day, whilst the technical indicators head sharply higher from oversold levels, maintaining a strong upward slope, but still below their mid-lines”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have lost their upward strength near overbought levels, but are still far from suggesting a downward corrective movement for the upcoming hours”.

Support levels: 41.30 40.65 39.90. Resistance levels: 43.00 43.70 44.55.

Crude oil rose sharply on Thursday and climbed nearly 10% to an 8-day high just below $43.00 a barrel helped by a comeback in stocks and following a report that Venezuela has asked the OPEC to hold an emergency meeting on falling oil prices.

(Market News Provided by FXstreet)