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The oil prices could extend its rebound shrugging off EIA data

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 22, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

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    Brent Mar. 16 Daily 22-01-2016 06-46-11 ص.jpg
    Brent Mar. 16 could extend its rebound from $27.10 to reach $29.83, before residing for trading currently near $29.50, despite US EIA Oil stockpile growing in the week ending on Jan. 15 to 486,537m by gaining 3.979m barrels, while the market was waiting for adding 2.248m, after increasing by only 0.234m in the week ending on Jan. 8 to keep hovering above 480m barrels in the recent 11 weeks.

    Brent Mar. 16 has been exposed to increasing downside momentum in the beginning of this week which opened on a downside gap at $28.23, before having extension to $27.10.

    The oil prices have been negatively impacted by implying the Iranian nuclear deal which can support the supplies by 0.5m barrels a day initially, while the worries about the demand solidarity were rising still because of the economic slowdown signs from china and the weaker than expected manufacturing performance in US last month.

    Brent Mar. 16 daily RSI could barely get out from its oversold area below 30 reading now 31.237 in the neutral region and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in into the neutral region reading 51.179 leading its signal line to refer now to 33.918, after continued existence in the oversold area below 20 since Jan. 8.

    Despite having its biggest daily gains since Oct. 18 yesterday, Brent Mar. 16 is still below its daily Parabolic SAR (step 0.02, maximum 0.2) which is referring today to 31.02 in its day number 13 of continued being above the trading rate.

    Important levels: Daily SMA20 @ $33.04, Daily SMA50 @ $38.30, Daily SMA100 @ $43.63 and Daily SMA200 @ $51.36

    S&R:

    S1: $27.10
    S2: $25.51
    S3: $25.33
    R1: $30.24
    R2: $31.18
    R3: $32.37


    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    walid.s@trade-24.com
    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143
    Archive:
    http://www.trade-24.com/daily-analysis

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