WTI Crude Daily Update for August 30, 2016

Crude fell to 46.79 per barrel during the European time zone, fading from 47.28 highs in early Asian trade. Dollar strength following Friday’s hawkish Fedspeak has weighed on prices, taking the dollar index to two-week highs, while hopes for a supply freeze have all but disappeared after Iran said it would consider talks only after it regained all of its pre-sanction market share.

Resistance on crude oil prices is seen near the 10-day moving average near 47.51.  Support is seen near last week’s lows at 46.40. Prices appear to be forming a bull flag pattern which is a pause that eventually refreshes.  Momentum is neutral as the trajectory of the MACD (moving average convergence divergence) index has flattened considerably.  The RSI (relative strength index) is printing a reading of 55, which is in the middle of the neutral range and also reflects consolidation.