WTI Crude Oil Daily Analysis – August 8, 2017

Crude futures finished lower on Monday but switch sentiment to Trade higher on Tuesday morning. Oil prices are mixed as doubts arise over OPEC’s commitment to production cuts ahead of the OPEC and non-OPEC meeting.

According to sources – The  U.S. weekly oil production touched 9.43 million bpd in the week of July 28, the highest since August 2015 and up 12 percent from its recent low in June last year.

Economic Event to be noted today

The American Petroleum Institute (API) is due to release its weekly oil data later on today which is expected to create a significant impact.

Technical Outlook

Short Term View

The hourly chart has formed a Descending Triangle Pattern. The current uptrend has consolidated and seems to be reversed towards a downtrend. More selling pressure can be expected towards $47.70-$45.50 levels. A break above resistance at $49.66 and a close of one hour candle will cancel the above pattern.

The market is  at sellers momentum and the rally might continue towards $45.5 level. Prices on Crude oil daily chart hold the exact 200 day moving average line which indicates neutral market.

Long Term View

The daily chart has formed a Megaphone chart pattern as prices failed to hold above resistance line at $50.

On the long term trend, a break above could turn the momentum form negative to positive and to push to $50. However, asprices could not break to the upside more bearish movement is expected. The next target is expected at $47.24.