Oil gains more than 2%, settles above $31.00 a barrel

By FXStreet FXStreet (Córdoba) – Oil prices bounced off 12-year lows, with WTI crude futures advancing up to $31.75 a barrel before settling up 2.4% at $31.20/bbl on Nymex.

The recovery spurred some optimism in the financial world, although it’s far from confirming a bottom has been reached, as the price remains within the lower half of this week’s range, while, even more important, the fundamental background remains the same.

WTI technical view

“US sweet, light crude daily chart shows that the technical indicators are recovering partially within oversold territory, whilst the 20 SMA heads strongly lower around 35.05, all of which reflects the strength of the latest bearish momentum”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is currently a few cents above a bearish 20 SMA, while the technical indicators turned south around their mid-lines, losing their upward potential after completing a bullish corrective movement, all of which increases the risk of a new leg south for this Friday”.

Support levels: 30.85 29.90 29.30. Resistance levels: 31.75 32.40 33.10.
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Source:: FX Street