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Home » Crude Oil » Crude Oil Chart 15/02/2016

Crude Oil Chart 15/02/2016

WTI rallied on Friday, breaking above the resistance (now turned into support) line of 28.00 (S1). However, the advance was stopped by the resistance zone of 29.50 (R1). Given that the price is still trading below the downtrend line taken from the 4th of December, I would consider the outlook to stay negative. For now though, I see signs that Friday’s surge may continue a bit more. A break above 29.50 (R1) could initially aim for the 30.50 (R2) barrier. Our short-term momentum indicators support the case as well. The RSI emerged above its 50 line, while the MACD stands above its trigger line, points up, and looks able to challenge its zero line any time soon. On the daily chart, I see that WTI has been printing lower peaks and lower troughs since the 9th off October. Therefore, I would treat the recovery started on Thursday, or any extensions of it, as a corrective move for now.

OIL

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