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Oil reverses gains and settles lower

FXStreet (Córdoba) - Crude oil prices ended lower on Tuesday, with West Texas Intermediate crude oil futures advancing intraday up to 48.41 before turning south and ending the day around $46.75 a barrel.

Earlier in the day, the International Energy Agency released a report this Tuesday, forecasting oil demand will growth less than previously estimated for next year by about 200K barrels a day, suggesting the market will remain oversupplied during 2016.

WTI technical view

“The daily chart shows that the black gold met selling interest around its 100 DMA, now trading a few cents above a bullish 20 SMA that converges with the daily descendant trend line broken last week. In the same chart, the technical indicators have turned sharply lower and maintain their strong bearish slopes near their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet.

“In the 4 hours chart, the 20 SMA has turned strongly south around 48.80, whilst the technical indicators have partially lost their bearish strength, but remain near oversold territory, maintaining the risk towards the downside, particularly on a break below 46.30, the immediate support”, Bednarik added.

As for technical levels, the analyst sees next supports at 46.30, 45.60 and 45.00, while she places resistances at 47.70, 48.45 and 49.10.

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