WTI Crude Daily Update for September 20, 2016

Oil prices moved higher but closed well off its highs after notching up gains of 1.3%, but closing up 0.88%. The upward swing came as Venezuela said OPEC and non-OPEC producers are close to agreement on stabilizing supply. An informal meeting of global producers is scheduled in Algiers.  Prices continue to consolidate after dropping through trend line support generated from connecting a low in August to the lows in September, which comes in near 45.  Additional resistance is seen near the 10-day moving average at 44.91.  Support is seen near the August low at 43.

Momentum is negative as the MACD (moving average convergence divergence) index recently generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.