WTI Crude Oil Daily Analysis – October 31, 2017

Crude oil prices settled higher on Monday and continue to trade slightly higher on Tuesday morning, setting an eight-month high despite cheerful talk from OPEC and non-OPEC members on a possible extension to the production-cut agreement.

OPEC Secretary General Mohammad Barkindo said that Russian-Saudi backing for an extension cleared the fog ahead of the group’s meeting in Vienna on Nov. 30.

Barkindo added: “OPEC welcomes the clear guidance from the crown prince of Saudi Arabia on the need to achieve stable oil markets and sustain it beyond the first quarter of 2018.”

Technical Outlook

Crude oil daily candle closed a Spinning Top candlestick pattern. This candlestick pattern is at the peak of an uptrend. It is necessary for traders to wait and watch for the next price movement.

The crude oil market has formed “Rising wedge pattern”. In this pattern, prices are nearby the resistance line at $54.57. A short position with a small quantity and a stop loss at yesterday’s high could be a good position. We can expect a small profit booking with a retest to support line towards $53.