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Home » Daily Technical Reports » Crude Oil Today Technical Report 04/04/2016

Crude Oil Today Technical Report 04/04/2016

WTI tumbled on Friday, falling below the support (now turned into resistance) barrier of 37.70 (R1) and finding support at the 36.30 (S1) hurdle. 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 36.30 (S1) to open the way for the psychological zone of 35.00 (S2). Our short-term momentum indicators reveal downside speed and amplify the case that WTI could continue trading lower. The RSI fell below its 30 line, while the MACD stands below both its zero and trigger lines. As for the bigger picture, the break above 34.40 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 04

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