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Home » Daily Technical Reports » Crude Oil Today Technical Report 13/04/2016

Crude Oil Today Technical Report 13/04/2016

WTI skyrocketed yesterday after Interfax said that Saudis and Russians reached consensus on oil output freeze and that the final decision won’t depend on Iran. The price rallied, moved above the 40.50 (S1) hurdle and hit resistance below the 42.55 (R2) obstacle. Then, WTI retreated back below 41.80 (R1). The price structure on the 4-hour chart suggests a short-term uptrend and therefore, I would expect the bulls to challenge the 42.55 (R2) zone in the near future. A clear move above that zone could prompt extensions towards the 43.30 (R3) zone, defined by the peaks of the 25th and 26th of November. Looking at our short-term oscillators though, I see signs that a corrective setback could be in the works before the next positive leg. The RSI stands within its overbought zone and could fall below 70 soon, while the MACD, although above both its zero and trigger lines, shows signs of topping. As for the bigger picture, the break above 34.40 has turned the medium-term outlook positive in my opinion. Moreover, the recent short-term uptrend confirms that the retreat started on the 18th of March was just a corrective move.

OIL 13

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