Monday's decrease beat WTI oil prices by more than 7.0%, as they were pushed to the level of 42.35 USD / b, but Wednesday's rebound resulted in an increase of 10% to the level of 47 USD / b. Today, we have a short-term correction towards the level of 45.60.
The global investors are not afraid of over-supplying the raw material in the face of the slowing global economy. Yesterday, the words of the Russian Minister of Energy Alexander Novak, which expressed the expectations of a more stable market in the first half of 2019, helped the bulls bounce from the oversold levels. He also referred to the cooperation between OPEC and its allies in order to support the market. Novak repeated the last comments of other producers, who had desire to limit production if the need arose.
Let's now take a look at the Crude Oil technical picture on the daily chart. The gap down from 53.22 to 45.62 is highlighted in a blue rectangle and as we can see, the market is trying to bounce and fill the gap. The market conditions are still oversold and the momentum remains weak and negative (still below its fifty level). In a case of a bullish scenario, the next target is seen at the level of 49.40 and this level must be broken on the way towards the 52.22, otherwise, the bears will be still in control over this market.
