17 September, AtoZForex.com, Singapore — Crude Oil extend gains for second consecutive days. Crude Oil extended its gains on Wednesday as an unexpected stockpile fall had the commodity surging close to 6% (its strongest one-day move). Price traded in a broad range between 44.80 and
47.30, before settling at 47.10 for the day. In fact, such upward move marks the strongest stretch since late last month, most notably with candles breaching past the initial descending triangle pattern. However with the surge in Crude Oil prices coming one day before the FOMC Economic Projection, one is too be mindful that the breakout of the corrective triangle could turn that other way round as well.
Aided by the great drop in the US Crude Oil Inventories, Crude Oil has now broke above the consolidation pattern that has been resilient of late. In fact, price has take flight above the 200.00% Fibonacci Expansion handle, further suggesting a short-term upside due to a turn higher in the sideways congestion pattern. Likewise with candles holding firmly above the 20, 55 & 200 MA lines, technical indication is indeed further emphasizing for the commodity to favor a stronger bounce. That said, we turn our short-term focus on the resistance at 48.20, followed by 261.80% Fibonacci Expansion (49.70).
Crude Oil provided some bullish bias yesterday, approaching the resistance line at 47.20 on the H1 chart, which represents the first factor for a short term bullish trend expectation. Given that price has rallied strongly the 46.30 level, technical indication looks to be opening the way to turn the commodity further to the upside, with the continuation of the bullish trend to 48.20 level as a next main station. Though Crude Oil is enjoying its support on the upside for now, it still remains susceptible to any sudden volatility ahead of the FOMC Economic Projection. Expected trading range for today is between 46.30 support and 48.20 resistance.