FXStreet (Córdoba) – Oil prices managed to reverse course and turned positive for the day after six consecutive days of losses.
WTI posted its lowest level in nearly seven years at $34.53 a barrel but bounced and climbed to a daily high of $36.70/bbl during the New York session. It was last trading up 1.6% at $36.20.
Despite today’s recovery, oil prices remain under heavy pressure as glut concerns increased after the Organization of the Petroleum Exporting Countries (OPEC) refrained from cutting output quotas at their meeting earlier this month. A stronger dollar ahead of the Fed meeting, also contributed to push crude prices lower. WTI financial crisis low was set at $32.40 in December 2008.
WTI technical view
“From a technical point of view, the commodity is barely correcting higher and far from reverting the dominant bearish trend, given that in the daily chart, the technical indicators are aiming higher in oversold territory, whilst the price is now further below a bearish 20 SMA, currently around 39.70”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price is being now capped by a bearish 20 SMA around the current level, while the technical indicators continue correcting higher from oversold levels, but are still below their mid-lines, in line with the longer term outlook. The recovery can extend up to 37.70, but it will take some firmer advance beyond this last to open doors for further gains during the upcoming sessions”.
Support levels: 35.70 35.15 34.55. Resistance levels: 36.40 37.05 37.80.
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(Market News Provided by FXstreet)