Oil breaches a descending price channel's ceiling - technical analysis - 15-12-2015

Oil crude prices gained ground in the intraday levels, attempting to recover some of the recent losses, which led it to breach the descending price channel's ceiling; the one which limited the prices' previous movements in the short term as shown in the attached chart; coupled with positive signals from the relative power indicators.

 

And even though the downward trend still dictates movements in the short term, we expect an upside correction for the crude, encouraged by exiting that price channel's range; targeting the first resistance level at 37.75, and in case of breaking through this one, it would then target the resistance of 39.40.