Crude oil futures dipped lower on Monday and trade higher on Tuesday morning as traders continue to fear whether OPEC could control the excess supply.
According to media sources – Kuwait’s oil minister Essam al-Marzouq has announced that OPEC will discuss at a meeting in November whether to extend or end production cuts. He also added that oil inventories in recent weeks fell more than expected.
The American Petroleum Institute (API) is due to release its weekly oil data later on today.
Short Term View
The 4H intraday chart has formed “Rising wedge pattern.” Prices are being supported at $47.22. Resistance holds at $48-49.
The daily chart has formed the Megaphone chart pattern as prices failed to hold above the resistance line at $50. The current prices trade just above the 100 day moving average at $47.70.
The long term 200 moving average holds as resistance line at $49.58 and support is on the 50 day moving average at $46.48.
This article was originally posted on FX Empire
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