Oil corrects the downward trend - technical analysis - 23-12-2015

Crude oil prices rose modestly in the intra-day levels, attempting to recover some of its previous losses, and to correct the main downward trend in the short term, along with trading within a descending price channel in the short term, and the continuance of the negative pressure from the simple moving average for the period 50, and with relative power indicators reaching extremely overbought levels.

 

Therefore we reaffirm our negative forecasts for the crude, a long as the resistance of 36.78 holds on, targeting thereafter the support of 34.50.