WTI CRUDE OIL - WTI Surged and Hit Our Target at $46.40! - 11/16/2016 (GMT)

Crude oil prices surged once more on Tuesday adding more than 5% in a single day on optimism that OPEC will renew efforts to make a deal on cutting oil output to face the persistent global glut. Crude inventories climbed by 3.6 million barrels to 488.8 million barrels in the week ended Nov. 11, according to the API report, compared with analysts’ expectations for an increase of 1.5 million barrels.

The West Texas Intermediate (WTI) jumped to $46.77 price level following the strong pullback from the $42.90 support level. The oil hit and surpassed our suggested target on yesterday’s analysis at $46.40 and is currently moving slightly above the 100-SMA on the 4-hour chart (see technical analysis here: http://bit.ly/2f3b2TS). The price is trading towards the $47.60 resistance barrier which coincides with the 50% Fibonacci retracement level of the last big downward move (high October 19th to low November 14th).

Technical indicators seem to be in agreement with the bullish movement since both are following an upward path. RSI is sloping upwards approaching the overbought area. Also, MACD lies above its trigger and zero lines with strong momentum.