7 Mar 2016
Oil gains over 5%
Crude oil was the star of the day, outperforming on hopes worldwide producers will reach a deal to freeze production during their upcoming meeting this March, whilst OPEC members are working on boosting prices to $50.00 a barrel, a new anchor for global prices.
During London trading hours, Brent crude surged to its highest for the year beyond $40.00, whilst US sweet, light crude followed through. WTI futures traded as high as $ 38.08 a barrel before easing somewhat, but maintaining the upward tone into the close. WTI futures settled up 5.5% at $37.90 a barrel.
WTI technical view
“Technically, the daily chart shows that the price extended further above its 100 DMA, while the technical indicators maintain their upward momentum near overbought territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA accelerated its advance below the current level, while the RSI indicator heads north around 78, and the Momentum indicator consolidates above 100, showing no directional strength, all of which suggests that the commodity may correct lower during the upcoming session. Nevertheless, dips down to $35.00 will likely be seen now by speculative interests as buying opportunities.”
Support levels: 37.10 36.35 35.50 Resistance levels: 38.10 39.00 39.80.
During London trading hours, Brent crude surged to its highest for the year beyond $40.00, whilst US sweet, light crude followed through. WTI futures traded as high as $ 38.08 a barrel before easing somewhat, but maintaining the upward tone into the close. WTI futures settled up 5.5% at $37.90 a barrel.
WTI technical view
“Technically, the daily chart shows that the price extended further above its 100 DMA, while the technical indicators maintain their upward momentum near overbought territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA accelerated its advance below the current level, while the RSI indicator heads north around 78, and the Momentum indicator consolidates above 100, showing no directional strength, all of which suggests that the commodity may correct lower during the upcoming session. Nevertheless, dips down to $35.00 will likely be seen now by speculative interests as buying opportunities.”
Support levels: 37.10 36.35 35.50 Resistance levels: 38.10 39.00 39.80.