28 Apr 2016
Oil settles at 6-month high
West Texas Intermediate futures broke higher on Thursday, extending beyond $45.00 a barrel for the first time since early November 2015 and stretching its rally up to an intraday peak of $46.12 a barrel.
News that US output has begun to decrease have sparked hopes that the worldwide glut will begin to ease sooner than later, despite stockpiles reached an all-time peak of 540.6 million barrels. Oil's recovery was underpinned by generalized dollar's weakness.
WTI technical view
“The daily chart supports some additional advances, given that the commodity has managed to post a higher high and a higher low for third consecutive day, whilst the 20 SMA has accelerated its advance, and currently stands at 42.20. In the same chart, the RSI indicator maintains its upward slope around 67, although the Momentum indicator diverges lower within positive territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are easing from near overbought levels, but remain well above their mid-lines, whilst the moving averages head firmly higher well below the current level, supporting some additional gains towards the 40.20/50.00 region for the upcoming days.”
Support levels: 45.50 44.80 44.20. Resistance levels: 46.40 47.10 47.80.
News that US output has begun to decrease have sparked hopes that the worldwide glut will begin to ease sooner than later, despite stockpiles reached an all-time peak of 540.6 million barrels. Oil's recovery was underpinned by generalized dollar's weakness.
WTI technical view
“The daily chart supports some additional advances, given that the commodity has managed to post a higher high and a higher low for third consecutive day, whilst the 20 SMA has accelerated its advance, and currently stands at 42.20. In the same chart, the RSI indicator maintains its upward slope around 67, although the Momentum indicator diverges lower within positive territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are easing from near overbought levels, but remain well above their mid-lines, whilst the moving averages head firmly higher well below the current level, supporting some additional gains towards the 40.20/50.00 region for the upcoming days.”
Support levels: 45.50 44.80 44.20. Resistance levels: 46.40 47.10 47.80.