Oil suffers from negative pressures. - technical analysis - 21-12-2015

Crude oil prices kept on declining in the intra-day levels, breaking through the crucial support level of 36.20, and trading within a descending price channel in the short term, along with a continuing negative pressure from the simple moving average for the period 50, and with an influx of negative signals from relative power indicators like the Stochastic indicator as shown below the attached chart, setting the stage for further decline in the future.

 

Therefore we expect a continuance of depreciation for the crude, targeting the support of 34.50.