Technical Update - Oil seems to rebound off of Bull/Bear Pivot
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Oil has been hit by heavy selling after spiking last week. But the sell-off could might have come to an end.
Brent oil has tested and seems to rebound at the rising trend line just above the Bull/Bear Pivot (where prices really took off end-February) at around $96.78 and the 0.618 Fibonacci retracement level of the uptrend initiated mid-December.
RSI is still above 40 threshold i.e. technically still in bullish sentiment and there were no divergence at the peak.
If Brent oil does not settle below the Pivot level and the 0.618 retracement we are likely to see it trend higher in coming week. A break above $114 is likely to accelerate rebound that could have potential to reach new highs.
Monthly chart for bigger picture reference. See longer Technical Update on oil from 8th March for detailed analysis
Light Sweet Crude oil (WTI) dipped below its Bull/Bear pivot at $96.82/brl. No divergence on RSI and still above 40 threshold indicates a rebound in oil prices. If WTI moves above $110.30 the panic mood can get a comeback with new highs.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.