Tuesday, October 27, 2015

Oil at 2-month lows around $44.00/bbl

FXStreet (Córdoba) - WTI crude oil futures trade at its lowest in two months Monday, below $44.00 a barrel, a few cents above the daily low set at 43.82.

The commodity suffered following a Goldman Sachs report that warned of downward risks for oil prices, as stockpiles remain near historic highs. Also, demand is seen sagging towards the year-end amid unseasonably warm weather in the US, which may result in even lower demand.

WTI technical levels

“The daily chart shows that the bearish momentum continues accelerating, with the price extending well below its moving averages and the technical indicators maintaining strong bearish slopes and extending to fresh lows near oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads lower around 45.00, reinforcing the strength of the static resistance level, whilst the technical indicators have lost their bearish tone near oversold levels, but are far from suggesting an upward corrective movement under way. Should the price extend below 43.40, chances are of a bearish acceleration towards the 42.00 region for this Tuesday”.

Support levels: 43.40 42.70 42.10. Resistance levels: 44.20 45.00 45.65.
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