WTI Crude Oil (current price: 40.88)
Oil advanced close to 6.5% to complete a quick comeback from a 15% correction, and close above important technical levels on Friday. The rally started after the positive inventory data from the U.S. on Wednesday, and the commodity is still being bought by traders this morning, despite the short-term overbought readings on the momentum indicators. The advance might be in danger later on today if global sentiment remains bleak and risk assets turn negative again.
Our assessment: The commodity is likely to turn lower after the $5 rally if the past three days. Traders will likely focus on the $40 level in the beginning of the week, with resistance found near the $42 level.
