WTI Crude oil prices posted a modest rebound from the recent lows as price is seen potentially forming a temporary bottom. The rebound in oil prices comes amid rising supply and weak global demand. Japan’s prime minister Abe is in Tehran to help resolve the stand-off between Iran and the U.S.
Is Crude Oil Posting a Dead Cat Bounce?
The rebound off the recent lows in crude oil has helped to push price only slightly higher. Price is seen trading near the 53.44 level which previously saw some consolidation. As long as this level holds, oil prices could remain range bound with the bias to the downside. The Stochastics oscillator is also showing a hidden bearish divergence which could indicate a potential downside. The lower support at $50.00 remains the downside target.
