Oil trims its gains - Technical Analysis - 30-12-2015

Crude oil prices rose in the intra-day levels, recording its highest level at 37.93, before bouncing back downwards; trimming their gains thereafter, and beginning the current session below the important resistance level of 37.22, which represents the ratio 50% of Fibonacci retracement levels for a descending wave in the short term (from 39.10 to 35.34), with negative pressure from the simple moving average for the last 50 hours period, pushing it further downward.

 

Therefore we expect the crude to depreciate, targeting the support of 36.23, which represents the ratio 23.6% of the same retracement levels mentioned earlier.