WTI Crude Oil Daily Analysis – August 10, 2017

Crude oil futures finished higher on Wednesday and continue to trade higher on Thursday morning as traders react to the EIA report that showed a sharp decline in supplies of U.S. crude oil.

According to the EIA reports – Crude stockpiles fell by more than expected last week, pointing to a small increase in refinery activity.

Moreover, the EIA mentioned in its report that U.S. crude stockpiles fell last week as refineries increased supply to the highest percentage in 12 years.

Technical Outlook

Short term Intraday View

The hourly chart has formed the symmetrical triangle Pattern. Oil prices broke above $49.40 and currently trading above the resistance line.

Oil prices are in a strong bullish momentum. Short term support at $49.20. A break below would lead towards $48.50-$47.50.

Long term View

The daily chart has formed a Megaphone chart pattern as prices failed to hold above resistance line at $50. The current prices consolidate around the 200 day moving average which indicates neutral market.

On the long term, a break above the resistance line could turn the momentum from negative to positive and push towards $52-55.