Oil Testing Support

Trading was mixed for the US crude oil futures movements, hitting the psychological barrier of 42.00, retreating during the Asian to re-test the support level mentioned in the previous analysis at 40.60, posting a low of 40.55.

Technically, despite the bearish bias, positive crossover signals have started to appear on Stochastic, and we find that the RSI indicator continues to provide positive signals on short time frames. From here, we will maintain our positive view, knowing that rising above 41.70 is a catalyst that enhances chances of a bullish move to 42.10 / 42.00. It should be carefully noted that trading above 42.10 confirms and accelerates the strength of the bullish trend towards 42.85.

On the downside, a break of the support floor at 40.60 is able to negate the bullish scenario and put the price under strong negative pressure, with an initial target of 39.60 / 39.80. Note: Today we are awaiting data from the International Energy Agency and may witness high volatility in prices.

S1: 40.60	R1: 42.10
S2: 39.80	R2: 42.85
S3: 39.05	R3: 43.45