Crude oil prices managed to slightly incline during yesterday’s session amid comments about an OPEC output cap seemed to overshadow the high inventory build up, according to the Department of Energy on Wednesday.
Support is close to the 10-day moving average at 44.76. Resistance is at the late September highs at 47.77.
Momentum has gained momentum as the MACD (moving average convergence divergence) index generated a buy signal. This takes place as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.
The index managed to shift into a to positive territory confirming the buy signal. The index is printing in the black with an upward sloping trajectory which points to lower prices.