Crude oil holds onto gains above $46.00

By FXStreet FXStreet (Córdoba) – Crude oil prices rallied Wednesday, and WTI crude oil futures reached $46.00 a barrel during the American afternoon, holding nearby by the US close.

The rally started at the beginning of the US session, despite the EIA reported another rise in US stockpiles. According to the latest data, crude stocks rose by 3.4 million barrels in the week ending October 23, slightly below expectations. Also, the API report released late Tuesday showed an increase of 4.1 million barrels, all of which points for a continued glut in the oil market.

WTI technical view

“Nevertheless, the commodity holds on to its gains and the daily chart shows that the technical indicators extended their advances from oversold levels, but are still in negative territory, while the price approached its 20 SMA, now a strong resistance at 46.90”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price advanced well above its 20 SMA, whilst the technical indicators are losing partially their upward momentum, but holding well above their mid-lines, in line with further advances as long as buyers surge on dips towards 45.00”.

Support levels: 45.10 44.40 43.70. Resistance levels: 46.20 46.90 47.70.
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Source:: FX Street