November crude oil continued to follow through to the upside on Tuesday, October 4, 2016, making a new high for the move and nearing resistance levels at 49.36 with a high of 49.26. The close above the trendline (47.90) could continue to put upward pressure on crude oil prices.
A breakout above the 49.36 resistance level could lead to a test of resistance at 50.00, then 50.54. A break above the trendline at 50.76 could to a test of the June high at 51.67.
Crude made its high for the day after the late afternoon API report showed a surprising drawdown of 7.6 million barrels as traders were looking for a build of approximately 1.5 to 2.6 million barrels. Inventories of crude oil from Cushing, Oklahoma increased by 400,000 barrels, larger than the 100,000 barrels traders were expecting.
Gasoline inventories rose by a larger than expected (500,000 barrels) 2 million barrels. Distillates declined by 1.3 million barrels. We get the EIA report today and confirmation of the decline in crude inventories could lead price to test the resistance levels. Support levels are at 48.55,47.89,46.99, 46.12 and 45.81.
High 49.26
Low 48.26
Last 49.19
Daily Pivot Points for 10/5/16
R2 49.90
R1 49.55
PIVOT 48.90
S1 48.55
S2 47.90