Oil faces a crucial resistance. - technical analysis - 16-12-2015

Oil crude prices rose in the intraday levels, after breaching the ceiling of that descending price channel that limited the prices' previous movements in the short term. The crude went on to test the crucial resistance level of 37.75, along with touching the support of the simple moving average for the period 50. Relative power indicators also reached overbought levels, sending negative signals, along with the wider dominance of the main downward trend in the short term.

 

Therefore we forecast a decline for the crude oil, targeting the central support of 34.50.