1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

WTI is still reacting to the demand shortfall news

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 7, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    CL-FEB16 H1 07-01-2016 07-22-44 ص.jpg
    Despite the tension between Iran and Saudi Arabia because of Saudi Arabia’s execution of Saudi Shiite Cleric which sent CL FEB 16 up to 38.37 in the beginning of the new year and despite the falling of US EIA Oil stockpile of the week ending on Jan. 1 by 5.085, while the market was waiting for decreasing by only 0.5m, WTI managed to have new 12 years low reaching $32.77 a barrel yesterday.

    As the increasing doubts about the Chinese economic activity and the weaker than expected US manufacturing performance by the end of last year could dominate the market sentiment hurting the demand expectations.

    After opening the new week on upside gap, CL FEB 16 which reached $38.37 to have hardly a place above its daily SMA20 came again under increasing selling pressure to break yesterday its formed bottom at $35.16 on Dec. 11 by a new pulse wave could be extended to $32.77, before rebounding for trading near $33.25 currently with continued existence below its hourly SMA20, SMA50, SMA100 and SMA200.

    CL FEB 16 has formed intermediate resistance level at $36.35 and also at $34.25 during yesterday slide which is still leading its daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility to have its main line in the oversold region below 20 reading now 8.729 and also its signal line which is referring to 17.058.

    Important levels: Daily SMA20 @ $36.49, Daily SMA50 @ $40.28, Daily SMA100 @ $42.74 and Daily SMA200 @ $48.80.


    S1: $32.77
    S2: $31.28
    S3: $30
    R1: $34.25
    R2: $36.35
    R3: $38.37

    Have a good day

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

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

    To open your account at Trade-24 - Click here

Share This Page