WTI Crude Oil Daily Analysis – August 23, 2017

Crude oil futures trade slightly lower on Wednesday morning after a higher closing on Tuesday, as traders look forward to the release of U.S. inventories data. Traders expect  U.S. crude oil supplies to fall for the eighth-straight week.

The API inventory data released on Tuesday and the EIA that will be published today at 14:30 GMT are expected to show the crude oil supplies fell the eighth-straight week.

According to analysts – crude inventories are expected to draw by 3.5m barrels in the Aug 18 week.

Technical Outlook

Short Term View

The 4H intraday chart has formed “Rising wedge pattern.” Prices are being supported at $47.22. Resistance holds at $48-49. A break below the support could reach towards $46.50-45 level.

Long-term View

The daily chart has formed Megaphone chart pattern as prices failed to hold above resistance line at $50. The current prices trade just below the 100 day moving average at $47.70.

The long term 200 moving average holds as resistance line at $49.58 and support is on the 50-day moving average at $46.48. A break of the support could add on to further bearish movement.