Oil rallies to near $49.00 a barrel

By FXStreet FXStreet (Córdoba) – Crude oil prices rallied more than 4% this Tuesday, and WTI crude oil futures surged up to $48.72 a barrel, following a EIA report that estimates that US oil production fell by 120,000 barrels per day in September.

Sweet, light crude traded at levels not seen since late August, having barely retreated from the highs. Also, the OPEC Secretary-General Abdullah al-Badri said that oil producers should collaborate to reduce the supply glut, giving additional support to the commodity.

Oil technical view

“Technically, the daily chart shows that the technical indicators have accelerated well above their mid-lines, whilst the price has broken above the daily descendant trend line coming from August high pointing for a continued advance. In the same chart, the 100 SMA is now the immediate resistance around 49.05 and the level to overcome to confirm a continuation rally”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the RSI indicator is hovering around 75, partially losing its upward strength, whilst the Momentum indicator turned lower, but holds well above its mid-line. Nevertheless, with the price holding near its highs, the downside seems limited, while a break above the mentioned 49.00 …read more

Source:: FX Street