Oil picks up bearish momentum…again

Oil_daily_chart_Much as expected, the recent ‘rally’ for oil has been short lived, and as rumour and speculation swirl around the markets, with OPEC meetings first on, then off, and with Nigeria voicing its discontent with the current inactivity, the price of oil has continued lower once again.

Yesterday’s price action confirmed the weakness, breaking below the psychological $50 per barrel region to close at $49.45 per barrel on rising volume, a signal of a sustained move lower. In today’s early trading, this bearish sentiment has continued, with the WTI April contract now trading at $48.81 per barrel at the time of writing. The next key level now awaits in the $48 per barrel area, as delineated by blue dotted line. Once this level is breached, the downwards momentum for oil will increase once again, with a move to test the $44 per barrel region of late January, then likely.

If  the floor of support does manage to hold, then we can expect to see further congestion in this region, but oil remains heavily bearish, and it is only a question of time before this platform is breached.

By Anna Coulling

About Anna 1054 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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