U.S. Oil chart on Trading View used for analysis
- WTI opened with a slight bullish gap, but is struggling to find follow through upside momentum.
- The trend still bearish with no signals of a reversal despite momentum indicators at oversold readings.
- Markets skeptical whether the planned supply cuts by the OPEC and other producers such as Russia will be able to stabilize the oil markets.
- OPEC and allied oil producers said that they will do what is needed to balance the market next year.
- Price action below cloud and major moving averages, extends weakness below 200-W SMA.
- We see scope for test of major trendline support at 42 mark. Violation there could see further weakness.
- On the flipside, breakout at 5-DMA could see gains upto 21-EMA at 49.48.
Support levels - 42, 39.17 (Aug 1, 2016 low)
Resistance levels - 44, 44.91 (5-DMA)
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