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Home » Daily Technical Reports » Crude Oil Today Technical Report 28/03/2016

Crude Oil Today Technical Report 28/03/2016

WTI traded higher on Thursday after it hit support near 38.50 (S1). Given that on the 23rd of March, the price fell below the upside support line taken from the low of the 24th of February, I would consider the short-term picture to be negative. I would treat the recent recovery as a corrective bounce and I would expect the bears to eventually take control again and drive the battle for another test at 38.50 (S1). A break below that line could prompt extensions towards the 37.70 (S2) barrier, defined by the low of the 15th of March. As for the bigger picture, the break above 34.40, the upper bound of the sideways range WTI had been trading from the 12th of February until the 2nd of March, has turned the medium-term outlook positive in my opinion. Therefore, I would treat the short-term downtrend, or any extensions of it, as a corrective move for now.

OIL 28

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