Slobodan Drvenica
Windsor Brokers
US CRUDE OIL
US oil is in recovery mode in early Friday and returned above $49.00 handle after suffering heavy losses the day before. Oil price fell sharply on Thursday, losing 5% for the day after OPEC announced agreement for nine-month extension of production cut.
OPEC decision disappointed markets that were expecting stronger action, prompting traders out of long positions that triggered sharp sell-off.
Oil price registered the biggest one-day fall since 08 Mar on Thursday that turned near-term focus lower after daily close below a cluster of supports at $49.76/$49.44, formed by 10/200 and 55SMA’s, as well as $48.83 (Fibo 38.2% of $43.74/$51.98 rally).
Daily 20SMA at $48.47 was cracked on Friday’s extension to $48.24 low, but is still acting as valid support which may hold for corrective rally on strongly oversold 4-hr studies.
Near-term action is biased lower on fresh bearish sentiment and may extend losses towards $47.86 (daily Kijun-sen / 50% retracement) after correction which should be capped under psychological $50.00 barrier, reinforced by daily Tenkan-sen.
Res: 49.23; 49.67; 50.00; 50.55
Sup: 48.83; 48.24; 47.86; 47.35
Interested in Oil technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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