5 Jan 2016
Oil closes below $36.00 a barrel
FXStreet (Córdoba) - Crude oil prices reversed course on Tuesday, and WTI futures plummeted to a low of $35.82 a barrel as supply worries continue to weigh on the commodity. News that the Chinese manufacturing sector has contracted for a tenth month in-a-row, fueled concerns over diminishing demand for oil in an already oversupplied market.
The commodity lost more than 2%, marking its lowest settlement in about two weeks at $35.97 a barrel.
WTI technical view
“Technically, the daily chart maintains a bearish stance, as the price is now below a bearish 20 SMA, whilst the RSI indicator anticipates further declines, turning south around 39”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are gaining bearish strength below their mid-lines, while the price has been unable to advance beyond the 20 and 100 SMAs, both around 36.90, offering a strong resistance level in the case of an intraday advance”.
Support levels: 35.50 34.80 34.30. Resistance levels: 36.80 37.50 38.30.
The commodity lost more than 2%, marking its lowest settlement in about two weeks at $35.97 a barrel.
WTI technical view
“Technically, the daily chart maintains a bearish stance, as the price is now below a bearish 20 SMA, whilst the RSI indicator anticipates further declines, turning south around 39”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are gaining bearish strength below their mid-lines, while the price has been unable to advance beyond the 20 and 100 SMAs, both around 36.90, offering a strong resistance level in the case of an intraday advance”.
Support levels: 35.50 34.80 34.30. Resistance levels: 36.80 37.50 38.30.