Oil settles higher after volatile session

FXStreet (Córdoba) – It was quite a volatile day for WTI crude, as the commodity initially plunged to $43.70 a barrel, bouncing sharply after the release of US natural gas stockpiles that rose above expected, but resulted in a 2.2% price advance.

WTI technical perspective

“West Texas Intermediate futures advanced up to a daily high of 45.14, ending the day with limited gains, and still in risk of additional declines, as the daily chart shows that the price is well below its 20 SMA, whilst the Momentum indicator heads slightly lower below its 100 level and the RSI hovers with no directional strength around its mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the upside seems limited, as the price is below its 20 and 100 SMAs, both around 45.90, whilst the technical indicators have turned flat below their mid-lines”.

“The commodity has a strong static support area around 43.20/30, from where it bounced several times during this month. It will take a break below it to confirm additional midterm falls, back towards the $40.00 price zone”, Bednarik added.

Support levels: 44.90 44.10 43.50. Resistance levels: 45.70 46.30 47.00.

It was quite a volatile day for WTI crude, as the commodity initially plunged to $43.70 a barrel, bouncing sharply after the release of US natural gas stockpiles that rose above expected, but resulted in a 2.2% price advance.

(Market News Provided by FXstreet)