Technical Update - Crude oil breaking rising trend line finding support at key levels. Will they hold?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Oil futures got hit hard last night with heavy selling. Contract dropping 10% to support levels.
After a couple of failed attempt Brent Crude oil broke below its rising trend line touching the support at 101.30 before bouncing a bit. However, RSI is now below 40 threshold i.e. in negative sentiment indicating lower levels are likely. If 101.30 is taken out key support at 96.75.
To reverse this bearish picture Brent must get back above 114.73.
WTI finally said good bye to its rising trend line after jumping around it for about a week. Support at 98.20 seems to hold for now but if WTI breaks below, 92.93 is next key support.
To reverse this bearish picture WTI needs to move back above 111.45
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