Oil settles just below $42.00 a barrel after volatile session

By FXStreet FXStreet (Córdoba) – Oil traders have witnessed a volatile session, with prices moving back and forth to finally settle near $42.00 a barrel, posting the first daily gain in nine.

Oil bounced from fresh 2-month lows barely above $40.00/bbl and recovered some ground, although from a wider view, crude remains pressured by global supply glut concerns and broad dollar strength.

WTI technical view

“Technically, the daily chart suggests that the ongoing advance is purely corrective, given that the technical indicators are barely bouncing from overbought readings, whilst the price remains well below its moving averages”, said Valeria Bednarik, chief analyst at FXStreet. “At this point, only a steady advance beyond 42.50, a strong static resistance level, will favor further intraday gains, towards the 44.00 region for this Tuesday”.

Bednarik locates next support levels at 41.35, 40.70 and 40.10, while she places resistances at 42.50, 43.30 and 44.10.
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Source:: FX Street