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WTI Crude Daily Update for September 30, 2016

By:
David Becker
Updated: Sep 30, 2016, 04:49 UTC

WTI crude oil prices moved higher on Thursday as traders continued to absorb the news that OPEC had agreed on a production cap at 32.5 million barrels a

Technical Analysis of Crude Oil for September 30, 2016 – Inventory Report Friday

WTI crude oil prices moved higher on Thursday as traders continued to absorb the news that OPEC had agreed on a production cap at 32.5 million barrels a day. This would theoretically reduce the number of barrels produced by 700K barrels a day.  If this really occurs, OPEC will have shifted its strategy to one of price protection as opposed to gaining market share.

Resistance is seen near a downward sloping trend line that connects the highs in May to the highs in August and comes in near 48.10.  Support is seen near the 10-day moving average at 45.29.  Momentum 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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