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15 Jan 2015
WTI Crude witnesses a chart driven recovery
FXStreet (Mumbai) - Crude prices in the US advanced more than USD 2/barrel today, on speculation that the sell-off is overdone triggered a technical recovery in the commodity.
WTI Crude for February traded 4.92% higher at USD 50.91/barrel at the time of writing, compared to the previous session’s close at USD 48.48/barrel. The recovers is seen despite the concerns of supply glut still in place. The Energy Information Administration (EIA) data released yesterday showed crude stocks in the US rose by 5.4 million barrels in the last week, far more than analysts' expectations for an increase of 417,000 barrels, pointing to continued oversupply in the market. Moreover, the prices have also recovered on account of expiration of the February contract.
On technical grounds, the prices are trading above the short-term averages of 5-DMA and 10-DMA located at 47.78 and 48.27 respectively. However the sharp recovery has pushed the hourly RSI(14) into the overbought zone. Prices also faced rejection near the 20-DMA located at 51.23.
WTI Crude Technical Levels
The immediate resistance is seen at 51.20, above which gains could be extended to 52.40 levels. Meanwhile, support is seen at 49.54 and 47.17 levels.
WTI Crude for February traded 4.92% higher at USD 50.91/barrel at the time of writing, compared to the previous session’s close at USD 48.48/barrel. The recovers is seen despite the concerns of supply glut still in place. The Energy Information Administration (EIA) data released yesterday showed crude stocks in the US rose by 5.4 million barrels in the last week, far more than analysts' expectations for an increase of 417,000 barrels, pointing to continued oversupply in the market. Moreover, the prices have also recovered on account of expiration of the February contract.
On technical grounds, the prices are trading above the short-term averages of 5-DMA and 10-DMA located at 47.78 and 48.27 respectively. However the sharp recovery has pushed the hourly RSI(14) into the overbought zone. Prices also faced rejection near the 20-DMA located at 51.23.
WTI Crude Technical Levels
The immediate resistance is seen at 51.20, above which gains could be extended to 52.40 levels. Meanwhile, support is seen at 49.54 and 47.17 levels.