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24 Feb 2015
WTI Crude rises above 50-DMA, trades positive
FXStreet (Mumbai) - WTI Crude April futures rose above 50-DMA located at USD 49.50/barrel, after having recovered from the low of USD 48.68 hit on concerns of excess supply.
WTI Crude: will it sustain above 50-DMA?
The recovery seen in Crude prices was largely in the absence of fresh fundamental trigger. Moreover, the Weekly US oil inventory data will start coming in from Tuesday, with the API Weekly Statistical data due later in the day and the EIA Weekly Petroleum Status Report due on Wednesday.
In the meantime, Greece’s debt drama and Fed chairwoman Yellen’s testimony shall take the center stage. Both the issues can significantly impact the US dollar and thus lead to intraday swings in Crude prices. A weak USD could help Crude sustain above the 50-DMA located at USD 49.50. However, eventually the prices could decline sharply if the weekly supply data shows oil inventories in the US continued to rise in the last week.
WTI Crude Technical Levels
The immediate resistance is seen at 50.39 (5-DMA), above which gains could be extended to 51.46 (10-DMA). On the flip side, a break below 50-DMA at 49.50, could push the prices down to daily low of 48.68.
WTI Crude: will it sustain above 50-DMA?
The recovery seen in Crude prices was largely in the absence of fresh fundamental trigger. Moreover, the Weekly US oil inventory data will start coming in from Tuesday, with the API Weekly Statistical data due later in the day and the EIA Weekly Petroleum Status Report due on Wednesday.
In the meantime, Greece’s debt drama and Fed chairwoman Yellen’s testimony shall take the center stage. Both the issues can significantly impact the US dollar and thus lead to intraday swings in Crude prices. A weak USD could help Crude sustain above the 50-DMA located at USD 49.50. However, eventually the prices could decline sharply if the weekly supply data shows oil inventories in the US continued to rise in the last week.
WTI Crude Technical Levels
The immediate resistance is seen at 50.39 (5-DMA), above which gains could be extended to 51.46 (10-DMA). On the flip side, a break below 50-DMA at 49.50, could push the prices down to daily low of 48.68.