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WTI Crude Daily Update for October 3, 2016

By:
David Becker

WTI Crude oil prices broke out closing above trend line resistance generated from connecting the highs in June to the highs in August that comes in near

Technical Analysis of Crude Oil for October 3, 2016 – Inventory Report Monday

WTI Crude oil prices broke out closing above trend line resistance generated from connecting the highs in June to the highs in August that comes in near 48.10.  Support is seen near the 10-day moving average at 45.77.  The move comes on the back of this past Wednesday’s announcement by OPEC that they would reduce output after their November meeting by 700K barrels per day.  Baker Hughes, the giant oil service firm, announced that operating rigs increased by 7 rigs in the latest week.

Momentum on crude Oil prices has turned positive as the MACD (moving average convergence divergence) index generated a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal.

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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