WTI Crude Oil (current price: 42.70)
Oil ended yesterday’s session more than 4.5% higher, above $43 for the first time since December. The commodity has risen by more than 15% in only one week after two weeks of losses. WTI Crude is now up by $15 from the lows of January at $28. The rally helped global risk assets in recovering from a sharp decline, as investors have been focusing on the Black Gold as an indicator of global growth in 2016. It will be crucial for the commodity to stay above the $42 resistance level in the coming sessions, despite its current overbought state.
Our assessment: Oil could continue to climb to new rally highs next week as long as the short-term advancing trend channel remains intact, following the expected correction in the next couple of days that should clear the overbought momentum readings.
