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Home » Daily Technical Reports » Crude Oil Today Technical Report 18/04/2016

Crude Oil Today Technical Report 18/04/2016

WTI opened with a large bearish gap on Monday after OPEC and non-OPEC members concluded the Doha meeting without an agreement. The price hit support at 37.60 (S1) and then it rebounded. In my opinion, the free fall has turned the short-term outlook negative and as a result I would expect sellers to seize control again at some point and aim for another test at 37.60 (S1). A decisive break below that hurdle is likely to open the way for the next support barrier of 36.65 (S2). Taking a look at our short-term oscillators, I see that the RSI slid and hit support near its 30 line, while the MACD, already below its trigger line, fell as well and turned negative. These indicators detect downside speed, but the fact that the RSI rebounded somewhat from near its 30 line makes me believe that further corrective bounce could be on the cards before the next negative leg. Switching to the daily chart, although the price is still trading above the downtrend line taken from the peak of the 24th of June, I see that today’s free fall came after WTI printed a high near the 42.55 zone, marked by the previous peak of the 18th of March. As a result, I prefer to take the sidelines for now as far as the medium-term trend is concerned.

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