Oil rises supported by positive sentiment

By FXStreet FXStreet (Córdoba) – Crude oil prices advanced Monday, with WTI crude oil futures retaking the $46.00 level amid a 3% rally in US gasoline prices. Despite latest news coming from Saudi Arabia indicate that crude oil demand is waning again, the commodity rallied, most likely supported by the general positive tone in worldwide indexes.

Crude technical view

“As for the technical picture, the daily chart presents a tepid bullish tone, as the price is back above a horizontal 20 SMA whilst the technical indicators head higher above their mid-lines, albeit the price failed to break above the daily descendant trend line that has been capping the upside seen late August”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical outlook is neutral-to-bullish, as the Momentum indicator is bouncing from its mid-line, whilst the RSI holds around 59 and the price above its mid-line. The mentioned trend line stands around 46.70/80 for this Tuesday, yet some follow through beyond 47.10, last Friday’s high, to confirm a continued advance during the upcoming sessions”.

Support levels: 45.90 45.10 44.25. Resistance levels: 47.10 47.80 48.60.
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Source:: FX Street