WTI Crude Oil Daily Update for January 19, 2017

WTI Crude oil prices dropped on Wednesday declining nearly 2.5%, as traders focused on the Energy Information Administration’s projection on higher U.S. production. Prices declined to support near the 50-day moving average at 50.66.  Additional support is seen near the January lows at 50.72.  Resistance is seen near the January highs at 55.24.

Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. EIA projected oil production in the biggest U.S. shale fields would rise by 40,750 barrels per day to 4.748 million barrels per day in February.