Oil fails to sustain intraday gains

By FXStreet Crude oil prices spent the day consolidating its latest gains, with WTI futures printing a fresh 8-week high of $35.30 a barrel, before retreating towards its daily opening.

The bullish sentiment that surrounded the commodity during the last few days, has diminished after the release of overwhelming US stockpiles build last week, while the price has reached a major long term resistance region, as this Thursday’s rally stalled a few cents below the 100 DMA, currently at $35.60.

WTI technical view

“From a technical point of view, the upward potential is now in pause, but still present given that in the daily chart, the price develops well above a now bullish 20 SMA, the Momentum indicator has bounced from near its mid-line and heads north within positive territory, while the RSI hovers around 58,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price retreated towards a still bullish 20 SMA, currently around 34.20 and the immediate support. The technical indicators in this last time frame had turned south within positive territory, indicating increasing chances of a downward move, particularly on a break below the mentioned 34.20 level.”

Support levels: 34.20 33.35 32.55. Resistance levels: 34.90 35.60 36.35.
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Source:: FX Street