WTI Crude Daily Update for August 26, 2016

WTI crude has rallied to intraday highs of 47.27, from the lows of 46.42. Short covering has been the driver, following four straight sessions of lower daily highs and lower daily lows. Positions are likely being pared back into Yellen’s Friday Jackson Hole speech, which could impact oil prices by moving the dollar.  Wednesday larger than expected build in crude oil inventories was the catalyst that pushed crude to support near the 10-day moving average at 47.09.

Resistance on WTI is seen near the August highs at 49.36.  Brent prices also rebounded in tandem with WTI.  Momentum has turned neutral as the markets consolidates.  The RSI has flat lined and is printing a reading of 56, which is in the middle of the neutral range.