Oil tries to gather positive momentum - Technical Analysis - 01-02-2016
Oil prices gave up ground in the intraday levels as traders take profits of the crude's previous short-term rises, while trying to gather positive momentum as well to help it rise again, after being affected by breaching the neck line of the Inverse Head and Shoulders positive pattern, which is contradictory to the main downward trend in the medium and short term as shown in the attached chart, with the ongoing positive support of the SMA50 while relative power indicators reached extremely oversold levels.
Therefore we expect the crude to to rise again in the coming trading, targeting the resistance of 35.35 as a first line of attack to encounter it.
Trend
Bullish