Crude oil prices have retraced all the profits after the Fed announced it will expand its balance sheet since January and the OPEC left the production quota intact. Adding to the upbeat sentiment surrounding commodities on Wednesday, the IEA has revised up its prospects for the oil demand in the next year.
“Hourly indicators are breaking below the midlines, with 4h chart studies being in the negative zone and price sliding below 20 day EMA and channel support that keeps the downside favored. Immediate support at 86.00 is under pressure, and break below to open recent lows at 85.35/20, loss of which would expose 85.00, ahead of key near-term support at 84.05, 07 Nov low”, explains S.Dvrenica, analyst at Windsor Brokers Ltd.
The WTI is now posting meagre gains at 86.79 or +0.02%.
According to the expert, the next resistance levels lie at 86.80, 87.00 and 87.66; while supports lie at 86.00, 85.76 and 85.35