29 Apr 2016
Oil erases early losses, reclaims $46.00 level
WTI crude oil futures fell in early Asian trading on Friday just to recover back to turn positive and is currently trading at high point of the day, above $46.00/barrel mark.
Broad USD weakness helped lift crude oil prices to move above $46.00 mark on Thursday, marking its best level since Nov. 2015. Crude oil prices have also been supported by the fact that the US crude supplies have been declining for seven straight weeks.
Technical levels to watch
From current levels, on a sustained strength above $46.25-30 area, the commodity seems more likely to aim towards surpassing $46.50 mark. But with daily RSI already indicating near-term overbought conditions, the commodity is likely to witness some profit taking move after four weeks of sharp up-move.
On the downside, weakness back below $46.00 mark seems to be supported at day's through level near $45.60-50 area. Although the follow through selling pressure might show lower levels, but is likely to be limited at a very important psychological resistance break turned support near $45.00 level.
Broad USD weakness helped lift crude oil prices to move above $46.00 mark on Thursday, marking its best level since Nov. 2015. Crude oil prices have also been supported by the fact that the US crude supplies have been declining for seven straight weeks.
Technical levels to watch
From current levels, on a sustained strength above $46.25-30 area, the commodity seems more likely to aim towards surpassing $46.50 mark. But with daily RSI already indicating near-term overbought conditions, the commodity is likely to witness some profit taking move after four weeks of sharp up-move.
On the downside, weakness back below $46.00 mark seems to be supported at day's through level near $45.60-50 area. Although the follow through selling pressure might show lower levels, but is likely to be limited at a very important psychological resistance break turned support near $45.00 level.