XM Group - Analytics

    XM Group

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    Technical Analysis – Oil rout continues as outlook eclipsed by bearish signals

    Oil prices headed lower for a fifth day on continued downward momentum, failing to reverse Monday’s heavy losses. The 5-day losses have pulled prices below the Ichimoku cloud and the tenkan-sen line has crossed below the kijun-sen line. The medium-term outlook is therefore looking increasingly bearish.

    Prices are likely to find support at 50.75, which is 61.8% of the Fibonacci retracement level of the upleg from the March 16 low of 42.84 to May 6 high of 63.59.  The near-term bias is also bearish with RSI falling deeper below 50. However, it has now broken into oversold territory under 30 so a short-term rebound is possible. Resistance could come at the 28.2% of the Fibonacci retracement level at 55.60.

    Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.

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