Crude Oil Hits Fresh 2016 High
On Wednesday, WTI crude oil
futures rose to $45.10 mark, hitting its highest level in 2016, before
retracing a bit to $44.80 ahead of weekly inventory data and the key Fed
monetary policy decision.
Even as a meeting between major oil producers ended in stalemate, the World Bank on Tuesday raised its forecast for crude oil prices by about 11%. Adding to it, reduction in oversupplies extended support to the prices that rose above $45.00/barrel mark for the first time since Nov. 2015.
Even on technical chart, the black gold has managed to break-through an important resistance near $44.40-50 area, marking 61.8% Fibonacci expansion level resistance of 27.73-42.46 up-move and subsequent retracement, suggesting that the commodity is more likely to extend its near-term upward trajectory.
Technical levels to watch
On a sustained trade above $45.00 mark, the commodity futures seems to extend its up-move immediately towards $45.65-70 horizontal resistance with $45.30-35 acting as intermediate resistance. The momentum seems strong enough to push it to $46.00 round figure mark.
On the downside, $44.50-40 resistance break-point now seems to protect immediate downside. Weakness below this immediate support could drag it lower towards $44.00 mark handle. However, any further downside now seems to be limited near $43.30 strong horizontal support region.