WTI Crude Oil Daily Analysis – August 7, 2017

Oil prices traded lower on Friday and continue to Trade low on Monday morning, however prices sustained around nine-week highs, supported by the U.S jobs data last week and the fall in the rig count.

According to Baker Hughes report released on Friday – The number of active rigs drilling fell by one to 765 last week which was the second decline in the past three weeks.

Investors will look forward to the monthly reports from OPEC and the IEA to measure oil’s supply and demand.

Technical Outlook

Crude oil prices hold above the strong support at $48.5 and settled near key psychological level of $50 a barrel. The one hour chart has formed a ”Descending Triangle pattern” which is bearish in nature and usually signals the end of an uptrend.

This rally might continue towards $47.50 – $48.50. A break above resistance at $50 and a close of a one hour candle will cancel the above pattern. Prices in the daily chart hold at the exact line of 200 day moving average which indicates neutral market.