Technical Update - Oil seems to rebound off of Bull/Bear Pivot
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
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.
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