WTI Crude Daily Update for December 9, 2016

WTI crude oil prices rebounded on Thursday, after testing support near the 10-day moving average at 49.39, but failing to continue to downtrend that began following Wednesday’s release of inventory numbers from the Department of Energy.  While total crude oil stocks declined, there was a noticeably large increase in inventories at Cushing were WTI crude oil is priced.  Resistance on crude oil is seen near the December highs at 52.44.  A break of support at the 10-day moving average would lead to a test of the 46 level.

Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory that points to higher prices.  A break of the 52.45 level would lead to a test of the June highs near 53.90.