Oil: Risks are on the downside for WTI - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that risks are on the downside in the next trading sessions for WTI as important technical thresholds at 52 and at 48.70 have been broken and as a downside bubble has emerged on the daily chart.

Key Quotes

“The fact that the weekly stochastic has turned around also pleads for stronger decline.”

“Against this backdrop, we recommend keeping a lookout at the support at 47.60 (rising trendline) whose break would confirm our bearish view, unleashing added downside potential to 45.50 (monthly Bollinger moving average) and to 44.20-44.40 (weekly Bollinger lower band).”

“The resistances are located at 48.70-48.90, at 50, at 52-52.10, at 53 and at 54.40-54.60.”