Commodities Weekly (25 Sep ’16)
Crude Oil prices have managed to halt immediate downside risks, with prices bouncing from USD42.55 to reach USD46.55.
Risk remains for a test lower in the coming weeks, but support within the USD41.50 retracement and USD41.10 low of 11 August is expected to underpin any tests, as monthly studies continue to improve and investors maintain a buy-into-weakness strategy. An unexpected break below critical support at the USD39.19 low of August would negate higher levels and confirm a deeper reaction.
Resistance is up to the USD47.75 high of 8 September with any immediate break to fade towards congestion within USD49.00/USD50.00 as weekly studies remain mixed.
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