Oil settles lower for third session in a row

By FXStreet FXStreet (Córdoba) – Crude oil prices fell further on Tuesday and closed slightly lower despite having bounced from fresh 6-year lows sub $37.00 a barrel.

WTI had a volatile session, oscillating between $36.64 and $38.58 a barrel, before settling at $37.52, down 0.28% on the day and posting its third loss in a row. It had lost 5.8% on Monday.

Oil prices faced strong selling pressure over the last sessions after the Organization of the Petroleum Exporting Countries (OPEC) failed to agree at its meeting on Friday to cut output to stabilize prices, which have fallen more than 60% since mid-2014.

WTI technical view

“The daily chart shows that the black gold has set a lower low and a lower high, reflecting the ongoing bearish trend. In the same chart the 20 SMA continues declining far above the current price, whilst the technical indicators continue heading lower near oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has accelerated its decline well above the current level, while the technical indicators hold near oversold territory, lacking clear directional strength, but far from suggesting an upward move for the upcoming sessions”.

Support levels: 37.20 36.60 36.10. Resistance …read more

Source:: FX Street