Fundamental Analysis
The path of least resistance for oil could still be towards the downside and we believe during the first half of next year we could form the bottom and the price will stabilise from there. Until then, the target of 28 dollar for the WTI crude is very real. The move we are experiencing in oil market today is mainly due to some profit taking nothing much- especially, if you look at the fundamentals.
Technical Analysis Crude oil is trading below its downward trend line on a 4 hour time frame. The price is trading below its 50 and 100 day moving average which shows that the trend is still towards the downside and as long we stay below this trend, the bias remain towards the downside.The RSI is trading inline with the price action and this reflects positive divergence. Therefore, the current upward move does have momentum behind this.
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam