Crude Oil Price Remains in Uptrend Above $50.40 Vs US Dollar

Crude Oil Price Remains in Uptrend Above $50.40 Vs US Dollar

  • – Crude oil price is still in an uptrend and is currently trading above the $50.40 level against the US Dollar.
  • – There is a monster breakout pattern forming with resistance near $51.00 on the hourly chart.
  • – Recently in the US, the EIA Crude Oil stockpiles report (Sep 11, 2017) was released by the Energy Information Administration.
  • – According to the report, the EIA Crude Oil stockpiles were 4.591M compared with the forecast of 3.493M.

 

EIA Crude Oil Stockpiles Report

Recently in the US, the EIA Crude Oil stockpiles report (Sep 11, 2017) was released by the Energy Information Administration. The market was positioned for the EIA Crude Oil stockpiles to be 3.493M compared with the last reading of 5.888M.

 

However, the actual result was on disappointing, as the EIA Crude Oil stockpiles were 4.591M compared with the forecast of 3.493M. Yesterday, the Fed interest rate decision was also scheduled. The central bank made no changes in the rates, but they went ahead with the hawkish tone.

 

It seems like oil prices were not affected much after the release, and remains supported on the downside above $50.40.

 

Oil Price Technical Analysis

The past few days were excellent for crude oil buyers, as there was a rise in prices above the $49.00 and $50.00 levels. The price is following a major uptrend and it even broke the $51.00 level recently to trade as high as $51.11.

 

Oil Price Technical Analysis

 

Later, the price started a downside correction and moved below the 23.6% Fib retracement level of the last wave from the $49.73 low to $51.11 high. On the downside, there are many supports starting with the $50.60 level followed by the 100 hourly simple moving average.

 

The 38.2% Fib retracement level of the last wave from the $49.73 low to $51.11 high is also at $50.58 to act as a support. It seems like there is a monster breakout pattern forming with resistance near $51.00 on the hourly chart.

 

Therefore, there is a clear a support forming near $50.40. As long as the price is above the $50.40 support, the price could attempt an upside break above the $51.00 handle in the near term.

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