Oil approaches a critical support - technical analysis - 18-12-2015

Crude oil prices gave up ground in the intra-day levels, approaching the crucial support level of 34.50 that we pointes to in our last analyses, along with the continuing negative pressure from the simple moving average for the period 50 in the intraday levels, and the crude's movements inside a descending price channel that limited its precious movements in the short term as shown in the attached chart. It's worth pointing out to a forming of a positive divergence in the Stochastic indicator as shown below the attached chart; and as the support of 34.50 holds on, giving positive signals for the next movements.

 

We therefore think it's likely the crue will undergo a correctional rise, targeting the resistance of 36.20, as long as the support of 34.50 holds on.