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Crude Oil Price Analysis for March 17, 2017

By:
David Becker
Published: Mar 16, 2017, 17:58 GMT+00:00

Crude oil prices surged higher and then reversed course mid-day. Prices were initially higher following Wednesday unexpected draw in crude oil

Crude Oil Price Analysis for March 17, 2017

Crude oil prices surged higher and then reversed course mid-day. Prices were initially higher following Wednesday unexpected draw in crude oil inventories. New that China’s crude oil production dropped by 8% annually to 31.44 million tons in January and February, also helped buoy prices.  Prices hit a high of 49.61, but were unable to hold on to gains ahead of resistance near the 10-day moving average at 50.15.

Crude Oil is No Longer Oversold

Support on crude oil is seen near and upward sloping trend line that comes in near 47.25.  Prices are no longer oversold, as the RSI (relative strength index) climbed above the 30 handle on Wednesday but remains near 32, as prices are consolidation. Recall, RSI readings below 30 are considered oversold.  Crude oil prices have not been oversold since January 2016, which was a prelude to a share correction in prices. Traders await Friday’s Baker Hughes Rig count for additional direction.

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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