Crude Oil Weekly Analysis 17 February 2017

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CHARTING

The crucial points are:

1

 

The price of crude had met heavy support at 51.50 level, where it bounced off and subsequently rallied higher to 52.50 again. Since, the price has been fluctuating within the price range from 52.50 level of support to 54.00 level of resistance, with efforts to breach the 52.50 level of support. The volatility surrounding the crude oil inventories report allowed the price to close near the daily open, even if they were higher than expected at 9.527 M barrels from 3.513 M barrels.

Charting outcome: Neutral

INDICATORS (computerized T.A)

The crucial points are:

2

3

The indicators are not providing a clear message about which direction the trend could possibly follow. The moving averages have kept the same slopes, while the balance between the positive and the negative dynamic has positively changed. The trend dynamic has marginally fallen by -7.70%, as well as the market’s volatility falling by -4.05%. Finally, the oscillators have remained into marginally oversold territories.

Indicators outcome: Neutral – Marginally bullish     

CONCLUSION

Both indicators and charting seem to confirm the neutral market scenario. However, there are arguments arising from the indicators which suggests the marginally bullish path as well. If the price appreciates higher than 54.00 level, the next resistance is possible to occur at 55.20 level. On the contrary, if the price breaks lower than 52.50 level as support, and breaks lower than 51.50 level, the next support could be the 49.70 level.

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