Crude oil posts highest close in two weeks

FXStreet (Córdoba) - Crude oil prices advanced over 4% Wednesday, and WTI futures reached a daily high of $47.33 a barrel after the US Energy Information Administration showed a total U.S. inventory drop of 2.1 million barrels for the week ended September 11, the largest decline in 7 months.

WTI technical view

“The commodity ended the day at its highest in two weeks around 47.00, and the daily chart shows that the price posted a sharp recovery from an increasingly bullish 20 SMA, whilst the Momentum indicator remains around its mid-line, but the RSI indicator heads strongly higher around 56, anticipating additional gains”, said Valeria Bednarik, chief analyst at FXStreet.

“Shorter term, the 4 hours chart shows that the price is well above the moving averages congestion zone in between 43.00 and 45.00, with the 20 SMA turning slightly higher and above the 100 and 200 SMAs. In this last time frame, the Momentum indicator continues to head north above the 100 level, while the RSI indicator is losing upward steam in overbought territory, but not yet suggesting an upcoming downward corrective move”, Bednarik added.

Support levels: 46.25 45.50 44.80. Resistance levels: 47.30 48.10 49.00.