WTI Seems Set to Surpass $45.00 Mark
WTI
crude oil future on Wednesday, seem to digest Tuesday's smart recovery
from $42.48, previous resistance turned immediate strong support, to a
fresh 2016 high of $44.80.
Tuesday's sharp up-move was triggered
by the World Bank's quarterly commodity markets outlook report that
raised forecast for crude oil prices by about 11% on the back of
reduction in oversupplies. Traders now await the outcome of a two-day
FOMC meeting, ending today.
Technical levels to watch
Tuesday's
rebound from 200-day SMA support near $42.50-40 area and a
follow-through up-move beyond $44.40-50 resistance zone, marking 61.8%
Fibonacci expansion level of 27.73-42.46 up-move and subsequent
retracement, suggests further near-term appreciation for the black gold.
From current levels, fresh leg of up-move beyond $45.00 round figure
mark has the potential to lift the commodity towards $45.65-70
horizontal resistance with $45.30-35 acting as intermediate resistance.
On
the downside, 61.8% Fibonacci expansion level resistance break-point
near $44.50-40 area now seems to protect immediate downside. Weakness
below this immediate support might now be limited at $44.00 round figure
mark support.
