US oil inventory draw gave a temporally support for oil prices

20 January, 2017

US oil inventory draw gave a temporally support for oil prices

The US oil inventory draw gave a temporally support for oil prices. The market will be focused on Oil Rig Count in the coming sessions.

Current situation

Oil prices remained in red figures after Wednesday's bearish acceleration. Brent a little changed on the day and remained prone to more weakness on Thursday. The benchmark stayed neutral around 54.50 dollars per barrel flirting with the level during the European session. Oil price stayed below the moving averages in the 4 hours chart. The 50-EMA crossed the 200-EMA downwards. The 100-EMA was flat while the 50-EMA headed lower, the 200-EMA maintained its bullish slope in the same chart. The resistance lies at 54.50, the support comes in at 53.50 dollars per barrel.

MACD entered the negative area. If MACD remains in the negative territory, sellers’ positions will strengthen. The RSI indicator was within the oversold readings.

Trading recommendations

Near-term technical studies are in full bearish setup. A daily close below 53.50 dollars per barrel will pave way for further near-term downslide towards the very important 50.00 psychological mark.


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