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WTI Crude Daily Update for October 21, 2016

By:
David Becker
Published: Oct 21, 2016, 05:16 UTC

WTI crude oil prices dropped approximately 2% on Thursday giving back nearly all of Wednesday’s gains in the wake of the larger than expected draw

Technical Analysis of Crude Oil for October 21, 2016 – Inventory Report Friday

WTI crude oil prices dropped approximately 2% on Thursday giving back nearly all of Wednesday’s gains in the wake of the larger than expected draw reported by both the EIA and API on Wednesday.  Prices settled off their lows, after testing the 52 level on Wednesday.  Support is seen near the 10-day moving average at 49.55, while resistance is seen near Wednesday’s highs at 52.22.

Momentum is flat as the MACD (moving average convergence divergence) index prints near the zero index level with a flat trajectory which reflects consolidation. The RSI (relative strength index) is reflecting divergence.  As prices hit a fresh high, momentum did not.  This is a reflection of decelerating positive momentum, and could foreshadow a correction in price action.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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