Oil recovers from multi-year lows

By FXStreet FXStreet (Córdoba) – Crude oil prices recovered mildly on Tuesday, after reaching fresh multi-year lows earlier this week, with WTI ending the day above $36.00 a barrel.

Light, sweet crude for February delivery gained 0.91% at $36.14 a barrel on the New York Mercantile Exchange while Brent was little changed at $36.32 a barrel on ICE Futures Europe. Nevertheless, the upward movement seems just corrective, given that there are no signs that the continued global supply glut is nearing an end.

WTI technical perspective

“The daily chart shows that the technical indicators have bounced from oversold territory, but remain well below their mid-lines, while the 20 SMA has extended further its decline above the current level, now providing a strong resistance at 37.80”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is now above its 20 SMA that anyway lacks directional strength, while the technical indicators have turned lower around their mid-lines, limiting the possibility of a stronger advance”.

Support levels: 35.70 35.20 34.60. Resistance levels: 36.60 37.10 37.80.
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Source:: FX Street