WTI Crude Oil Daily Analysis – September 27, 2017

Crude oil prices dipped slightly lower on Tuesday, as investors take profit on the latest rally ahead of the weekly inventory data today.

WTI crude oil gained 0.12% on Wednesday morning to trade around $52 as of 8:30 GMT.

On Monday, Turkey’s President Recep Tayyip Erdoğan said that his country could close the valves on the pipeline that carries 500,000-600,000 barrels of crude per day from northern Iraq to the Turkish port of Ceyhan.

Disruptions to U.S. refinery activity due to storm Harvey prolong to weigh demand for crude oil.

Technical Outlook

Crude oil 4H chart has formed the “Rising Wedge Pattern”. Prices try to rebound from the support slope line at $51.50. Hence, the market is expected to trade in Consolidation which would be a sideways trend movement towards $53.67, the highest since April-2017. On the other hand, Support holds at $51.50. A break below the support line could lead towards $50-$50.5 level.

The crude oil trades in lower highs and lower lows form. Since Feb 2017, it’s the first-time crude oil prices break through lower high which is an indication of trend reversal from negative to positive towards $53.67-$55.

On the daily chart, the 50-day moving average crossed over the 100-day moving average at $47.40, indicating bullish momentum.