XM Group - Analytics

    XM Group

    602.50 7.00/10
    70% of positive reviews

    Technical Analysis – Oil finds support at $30, bearish outlook remains

    Oil seems to have found a bottom around the key $30 level for now. But there is no sign of a shift in the current bearish trend. Since October 2015 prices have been falling in a descending channel from the key $50 level down to $27 – the lowest level in 13 years.

    In the bigger picture the market has a bearish outlook. Since mid-2014 prices have been making lower highs and lower lows. There was a sharp decline from around $107 to $43 in Jan 2015, then a slight correction to $63 then a drop again before falling sharply to $27.54.

    On the weekly chart, RSI has reached oversold levels at 30 which suggests consolidation in the market for now. If the $30 level fails to hold, then the market could move another leg lower. To the upside, the $50 level is an important resistance level, which if breached, would lead to moves towards the May 2015 high of $63 and this would weaken the bears.

    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.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree