1 Mar 2016
Oil rises to near $35.00 a barrel
Crude oil prices began the day with a negative tone, weighed by poor Chinese manufacturing readings, but after a stuttering start, prices jumped higher, with WTI futures reaching a fresh 5-week high of $34.74 a barrel, accumulating a 30% advance in near two weeks.
Ahead of the release of US stockpiles data, the commodity is comfortably consolidating above $34.00, maintaining the positive tone, although the background conditions that sent crude down to $26.00 are still present.
WTI technical view
“In the daily chart, the commodity advanced further above its 20 SMA, but the 100 SMA continues to head south, now around 35.80. In the same chart, the technical indicators have resumed their advances after a limited downward correction, in line with further gains for this Wednesday,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that a strongly bullish 20 SMA provided support around 33.36, the daily low, while the technical indicators have also resumed their advances, but lack momentum at the time being.”
Support levels: 34.00 33.35 32.55. Resistance levels: 34.90 35.80 36.60.
Ahead of the release of US stockpiles data, the commodity is comfortably consolidating above $34.00, maintaining the positive tone, although the background conditions that sent crude down to $26.00 are still present.
WTI technical view
“In the daily chart, the commodity advanced further above its 20 SMA, but the 100 SMA continues to head south, now around 35.80. In the same chart, the technical indicators have resumed their advances after a limited downward correction, in line with further gains for this Wednesday,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that a strongly bullish 20 SMA provided support around 33.36, the daily low, while the technical indicators have also resumed their advances, but lack momentum at the time being.”
Support levels: 34.00 33.35 32.55. Resistance levels: 34.90 35.80 36.60.