WTI Seems Set to Surpass $45.00 Mark
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.