WTI Crude Oil Daily Analysis – August 9, 2017
Crude oil futures finished lower on Tuesday and continue to trade slightly lower on Wednesday morning. Oil prices sentiment remains mixed as the increase in production from big players come opposed to reports that Saudi Arabia plans to curb exports to Asia next month.
With fears over OPEC’s ability to restrain supply as committed, Crude futures fell for the third consecutive day in Asia as the market dismissed a bigger than expected fall in U.S. inventories.
According to reports – Saudi Arabia is expected to cut oil sales to Asia by up to 10% in September to stop the global crude glut.
According to the API report – crude oil inventories dropped by 7.893 million barrels at the end of last week.
The U.S. Energy Information Administration will release its official weekly petroleum status report at 10:30 a.m. ET (1430 GMT) today.
Technical Outlook
Short term Intraday View
The hourly chart has formed a Symmetrical Triangle Pattern. If prices will continue to move steadily higher and a break above the slope line at $50 then the target is towards $50.50-$52 levels.
Prices are trading inside the triangle in order to fill the gap and may continue to break the lower support line at $48.60.
Long Term View
The daily chart has formed a Megaphone chart pattern as prices failed to hold above resistance line at $50. Prices hold nearby the 200 day moving average which indicates neutral market
On the long term, a break above the resistance line could turn the momentum from negative to positive and push towards $52-55.
This article was originally posted on FX Empire
