Crude Oil Flirting with Two Week Highs
Crude Oil prices are trading 1.05% higher for the day after United States EIA Crude Oil Stocks Change came in at -2.732M below expectations of -1.889M in August 16. Crude Oil price rallied since the low from August 7th price at $50.74 up to $56 as the global growth concerns ease. Crude oil price also helped by comments from the Iranian foreign minister on any further US-Iran talks outside revamping the abrogated nuclear deal served to push oil prices above the $56 mark.
On the technical side crude oil momentum is positive as the black gold today breaks above the 200 day moving average. If the price breaks convincingly and close above the 200 day moving average, the way to 58.63 the 100 day moving average will be open. On the downside crude oil immediate support stands at 54.96 the low from August 19th while more bids will emerge at 50.74 the low from August 7th. Long positions in crude oil look safe as long as the price hovers above $56 per barrel.