11 Apr 2016
Oil settles above $40.00 a barrel
Oil futures rose this Monday, with the US benchmark closing above $40.00 a barrel for the first time since March 22nd, while Brent crude futures closed the day near $43.00 a barrel, its highest level since December 2015.
The black gold was supported by an US government forecast saying that US shale oil production is expected to fall for a seventh month in a row in May, boosting hopes of a sooner end to the global glut that has kept prices depressed for over a year now.
WTI technical view
“Ahead of oil producers meeting in Doha next Sunday, the daily chart for WTI shows that the commodity settled above its 200 SMA, for the first time in almost a month, while the technical indicators hold flat within positive territory, lacking enough momentum to confirm further advances,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are retreating partially within overbought levels, whilst the 20 SMA accelerated its advance below the current level, and now converges with the 100 SMA at 39.10, providing a strong dynamic support in the case of a downward move.”
Support levels: 39.80 39.10 38.45. Resistance levels: 40.80 41.50 42.30.
The black gold was supported by an US government forecast saying that US shale oil production is expected to fall for a seventh month in a row in May, boosting hopes of a sooner end to the global glut that has kept prices depressed for over a year now.
WTI technical view
“Ahead of oil producers meeting in Doha next Sunday, the daily chart for WTI shows that the commodity settled above its 200 SMA, for the first time in almost a month, while the technical indicators hold flat within positive territory, lacking enough momentum to confirm further advances,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are retreating partially within overbought levels, whilst the 20 SMA accelerated its advance below the current level, and now converges with the 100 SMA at 39.10, providing a strong dynamic support in the case of a downward move.”
Support levels: 39.80 39.10 38.45. Resistance levels: 40.80 41.50 42.30.