WTI Crude Oil Daily Analysis – August 28, 2017

Crude oil futures settled higher on Friday, despite doubts that Hurricane Harvey could reduce demand for crude oil due to refinery shut down. Crude oil trade lower on Monday morning at $47.45, down 0.88%.

According to BSEE – Around 112 platforms have been evacuated in the Gulf so far as a result of Harvey, about 15% of those in the region. Half of the drilling rigs in the Gulf have also been evacuated.

Baker Hughes showed its weekly oil rigs count in the U.S. which was cut down for the second time in a row, by four rigs to 759.

Technical Outlook

Short Term View

The 4H intraday chart has formed “Falling wedge pattern”. Prices trade near support line at $47.40 in a very crucial area. A break below $47.50 and the selling pressure will be extended towards $45.50-$46.50. Resistance holds at $48-$49.

Long-term View

The daily chart has formed the Megaphone chart pattern as prices failed to hold above resistance line at $50. Currently, the price trades below 100-day moving average at $47.70.

The 200 moving average resistance line holds at $49.63, support is on the 50-day moving average at $46.48. A break of the support could extend the further bearish movement.