WTI Consolidating Around $45.00 Region
After closing above $45.00/barrel mark for the first time since early Nov. 2015, WTI crude oil futures seem to digest its gains around $45.00 mark.
On
Wednesday, Oil futures got a boost after the Federal Reserve decided to
leave interest rates untouched and failed to provide hints over future
interest rate hike. Tuesday's API report that showed fall in crude
supplies by 1.1 million barrels for seventh straight week also
contributed to Wednesday's rise in crude oil prices.
Technical levels to watch
After
a relentless up-move from last week's low of $37.61 and subsequently
breaking through important resistance levels, crude oil prices might now
face some resistance near $45.60-70 area. Moreover, with daily RSI
heading towards near-term overbought zone, we might witness some
near-term consolidation within a narrow trading range. However, should
the commodity manage to extend the momentum, $46.25-30 might now cap any
further up-move at least in the near-term.
Meanwhile on the
downside, and important resistance break-point near $44.50-40 area now
seems to have emerged as immediate strong support. Only a decisive break
below this support might trigger near-term corrective move for the
black gold.
