Oil finishes off hopes of rising. - Technical Analysis - 05-01-2016

Crude oil prices gave up ground in their intra-day levels trading, following a rise in yesterday's morning, to touch thereafter the resistance of 38.30, and bouncing off of it downwards, turning the initial gains into losses, and hinting at a forming negative technical pattern that would be complimentary to the main downward trend in the short and medium terms, which is the Symmetrical Triangle pattern as shown in the attached chart, along with an influx of negative signals from relative power indicators like the Stochastic indicator as shown below the attached chart, and with continuing negative pressure from the simple moving average for the last 50 days period.

 

Therefore we expect more losses for the crude, especially if it broke the support of this forming technical pattern; this confirming it, targeting thereafter the important support level of 35.35.