WTI Consolidating Around $45.00 Region
After closing above $45.00/barrel mark for the first time since early Nov. 2015, WTI crude oil futures seem to digest its gains around $45.00 mark.
On Wednesday, Oil futures got a boost after the Federal Reserve decided to leave interest rates untouched and failed to provide hints over future interest rate hike. Tuesday's API report that showed fall in crude supplies by 1.1 million barrels for seventh straight week also contributed to Wednesday's rise in crude oil prices.
Technical levels to watch
After a relentless up-move from last week's low of $37.61 and subsequently breaking through important resistance levels, crude oil prices might now face some resistance near $45.60-70 area. Moreover, with daily RSI heading towards near-term overbought zone, we might witness some near-term consolidation within a narrow trading range. However, should the commodity manage to extend the momentum, $46.25-30 might now cap any further up-move at least in the near-term.
Meanwhile on the downside, and important resistance break-point near $44.50-40 area now seems to have emerged as immediate strong support. Only a decisive break below this support might trigger near-term corrective move for the black gold.