Oil fails to sustain gains above $47.00

FXStreet (Córdoba) - West Texas Intermediate crude oil futures rallied at the beginning of the day up to $47.07 a barrel, boosted by a modest decline in the US production, according to data released on Wednesday. Also. supporting the rally was hurricane Joaquin, which was expected to hit US East Coast oil installations. But fears eased when the hurricane changed direction, prompting a decline below the 45.00 mark.

WTI technical view

“The daily chart shows that the price hit the daily descendant trend line coming from August high at 49.31, before retreating back below its 20 SMA, whilst the technical indicators have turned slightly higher around their mid-lines, maintaining the neutral stance seen on previous updates”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is now below its 20 and 100 SMAs that anyway remain horizontal, whilst the technical indicators are heading lower, barely crossing their mid-lines towards the downside, in line with the daily outlook”.

Support levels: 44.25 43.50 42.60 Resistance levels: 45.70 46.30 47.10