WTI Crude Daily Update for January 24, 2017

Crude oil prices closed lower down approximately 0.5%, at $52.85, well off its lows of $52.21. The market is corrected after running higher into the weekend’s meeting of OPEC and other key producers, which, as expected, affirmed that most of the agreed 1.8 million barrels per day output cut had already been achieved. Data out of the U.S. on Friday, meanwhile, continues to have some resonance, as 35 new rigs were activated last week.

Prices closed near the 10-day moving average at $52.82, with support seen near the January lows at $51.63. The first level of target resistance is seen near Friday’s highs at $54.27. Momentum is neutral. The RSI (relative strength index) is printing a reading of 48, which is in the middle of the neutral range and reflects consolidation.  The MACD is also seeing decelerating negative momentum which reflects consolidation.