- Oil.WTI rising strongly by more than 2.5% on the day
- Price has broken through prior resistance at 46.72-46.92
- Move above 47.76 would see the market turn positive on the week
There’s been a strong move higher seen in the oil price today, with Oil.WTI rising back above the $47 handle and engulfing the prior two days trading range. Yesterday’s DOE release was arguably supportive of the market, but price failed to rally. An attempted move higher around the European close was met by a wave of selling but crucially the weekly low at 45.77 remained in tact.
There’s been a strong move higher in Oil.WTI in the past hour. Source: xStation
From a daily perspective today could prove pivotal, with the market on course for a major up day. A close above 46.92 would be a clear positive and if price can breach 47.76 and turn positive on the week then we could see a large bullish hammer begin to form on the W1 chart heading into Friday. The 8 and 21 EMAs on D1 remain in a bearish orientation but price currently sits between these and it wouldn’t take too much more upside for a bullish cross to form. Alternatively, a rejection and reversal signal around these areas could prove attractive to shorts and given the pick up seen in volatility today there’s a good chance that by the weekend the path of least resistance will become clear.
Oil.WTI has risen to trade in between the 8 and 21 period EMAs on D1. The market could be now at a pivotal level going forward with a trend change possible. Source: xStation
There’s no major breaking news to support the rapid rise although earlier reports that OPEC’s output had declined by 300k bpd in August. This brings total production down to 32.6 Mbpd. There is also some talk circulating that refineries in Houston will be restarting on Sunday - sooner than previously expected - which could be positive for price.
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