Oil tries to recover some lost ground - Technical Analysis - 19-01-2016
Crude oil prices gained ground in the intraday levels and short-term trading, attempting to recover some of its previous losses, with the still overall guidance of the main downward trend in the medium term, and with the crude trading within a descending price channel that limited its previous movements in the short term. The crude eventually reached the resistance of the SMA for the last 50 hours period, approaching also the resistance of 29.80, while relative power indicators have reached overbought levels, hinting at a forming negative divergence in the Stochastic as shown below the attached chart, with the prices testing the downward trend line.
Therefore we expect the crude to resume decline, as long as the resistance of 29.80 holds on, targeting thereafter the support of 28.60.
Trend
Bearish