Oil suffers from negative pressure. - Technical Analysis - 29-12-2015

Crude oil prices kept declining in the intra-day levels, finally leaning on the support of 36.78, which represents the ratio 38.2% of Fibonacci retracement levels for a descending wave in the short term (from 39.10 to 35.34), along with the continuing negative pressure from the simple moving average for the last 50 hours period, and a forming of a negative divergence in the Stochastic indicator as shown below the attached chart.

 

Therefore we think the crude will give up ground, especially in case of the prices settling below the support of 36.78, targeting thereafter the support of 36.23, which represents the ratio 23.6% of the same retracement levels mentioned earlier.