Oil Erase Early Gains to $46.00, Turns Negative but Holds $44.00
WTI crude oil
futures once again are seeing selling pressure at higher levels, near
$45.90-$46.00/barrel mark, forcing the commodity to erase all of its
early gains to currently trade at low point of the day $44.20.
During
the Asian session on Monday, the black gold saw a bullish opening and
gained momentum towards $46.00 mark on concerns over supply disruption
in response to the raging Canadian wildfires. Market also cheered on
news that Saudi Arabia ousted oil minister Naimi and appointed Aramco’s
Khalid al-Falih, who is known to undertake reforms, in a bid to
stabilize oil markets.
As the day progressed, the commodity
erased all of its early gains and turned negative but is till holding
its neck above $44.00/barrel mark. Traders will now look forward to this
week's crude stockpiles report, for fresh insights on oil fundamentals
and in order to determine the next direction move for crude oil prices.
Technical levels to watch
On
a sustained weakness below $44.00 mark, the commodity could be eyeing
last week's swing lows support near $43.30-20 area, which if broken
should open room for a further corrective move towards $42.55-50
important support.
Meanwhile a move above $44.50 might now
confront resistance near $45.00-10 area, which is followed by a strong
resistance near $45.95-$46.00 area. Only a sustained break through
$46.00 strong resistance would negate any bearish bias, thus lifting the
commodity beyond 2016 highs resistance near $46.75 level, to reclaim
$47.00/barrel mark and head towards its next major resistance near
$47.50-60 area (Nov. 2015 highs).
