Technical & Fundamental Oil Reports Specialists

Follow us

Potential bear market developing

Published Wednesday, March 16th, 2016

Introduction. After Monday’s weakness the contracts lost further value yesterday. The market seems to be shaping up to go lower. Weaker numbers are not conclusive yet but there are clear supports that are expected to be put under pressure today. Closes below these supports will send prices lower in the near future. Equally, there are well-defined resistances above which any developing negative sentiment will evaporate. A close eye has to be kept on these extremities. It is only prudent to be patient until either supports are closed below or resistances settled over. WTI has the 100 and 13-day M/A supports to negotiate before it falls further. These levels are at 36.50 and 36.36. Should they be settled below the contract could be heading to the 34-day at around 33.86. On the upside a close above the 5 and 8-day M/As at 37.34/42 will send the price up to the 100-day at 38.74 and to the recent high at 39.02, a close above which is very bullish.

to read the rest of the report, please click here

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.