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Home » Daily Technical Reports » Crude Oil Today Technical Report 31/03/2016

Crude Oil Today Technical Report 31/03/2016

WTI traded lower yesterday after it hit resistance at the round figure of 40.00 (R1). The decline was halted by the 37.70 (S1) support zone, defined by the low of the 15th of March. 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 and I would expect a decisive break below 37.70 (S1) to open the way for the next support zone of 36.30 (S2). Our short-term oscillators detect negative momentum and corroborate my view that WTI could continue trading lower, at least for a while. The RSI is back below its 50 line and looks to be headed towards its 30 line, while the MACD, already negative, has fallen below its trigger line. 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 31

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