WTI Crude Daily Update for September 26, 2016

WTI crude rallied to 46.55, a fresh two-week high, from under $45.50 following reports that Saudi Arabia would cut production if Iran froze its output. This was quickly reversed with prices tumbling 3.89% when Saudi Arabia denied the reports.  Prices sliced through support which is now seen as resistance near the 20-day moving average at 45.60.  Additional resistance is seen near a downward sloping trend line at 45.60.  Support is seen near an upward sloping trend line that connects the lows in August to the lows in September and comes in near 43.50.

Momentum has turned positive as the MACD (moving average convergence divergence) index recently 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.