Oil goes back up

WTI oil has gone back up during today’s session after the US crude oil inventories came out lower during six weeks in a row, taking the price of WTI to the 200 day EMA (blue line) at the 49.35 level as shown on the daily chart. The 200 day EMA zone has been a hard to break resistance zone lately and coupled with the 55 day EMA (purple line), WTI oil could bounce to the downside from there. A little bit above the 55 day EMA we can see the 50.00 level, which in case of a breakout of those two moving averages could also act as resistance. Above the 50.00 level, any of the round number levels from the 51.00 to the 54.00 could also act as resistance. To the downside, the most relevant support is at the 48.00 level, but the 47.00, the 46.00 or the low at the 44.00 level could also act as support. If the 55 day EMA crosses below the 200 day EMA, then we could be having a “death cross” formation, which in the midterm has bearish implication for the instrument.