Nymex crude oil futures in month of September, closed at 51.57$ with huge gain. This was first gaining month for nymex crude oil futures after correction in august. In September, nymex crude oil futures hit high at 52.82$ while recorded low of 46.53$ and closed near high. Total almost 6.29$ month range and strong closing for nymex crude oil futures on value buying as well as sharp short covering.
On daily chart, nymex crude oil is trading with losses for October series. And today tested support of 50.3$ with low at 50.04$. Now trading just below 20 days average level of 50.4$ but still above 50 and 100 days average level which are 49.2$ and then 48.65$. Daily chart RSI is at 53 and correcting towards 50 level while MACD is 0.84 with bullish divergence.
For month of October, nymex crude oil futures major make or break level of 50.3$ and currently prices are trading around this level. If breaks down below this level then expect downtrend for nymex crude oil futures with bearish targets around 47.8$ and then 44$ for October series. If holds above 50.3$ then that will be strong buy signal for short covering rally up to 54.1$ to 56.6$ levels.
Nymex crude oil weekly chart is showing long term recovery phase but this week move suggesting crude oil going for correction and might test 48.5$ level before moving ahead which is its 20 and 50 weeks average levels on weekly chart.