WTI Oil is holding high levels and pressuring $49.00 barrier on fresh extension of strong rally from $45.39 (24 July trough). Oil price maintains firm bullish sentiment which was strongly boosted on Tuesday, when oil price rallied strongly on announcement of Saudi Arabia about reducing exports in August and was reinforced by Wednesday’s stronger than expected draw in US crude inventories.
Yesterday’s close above daily cloud was a bullish signal, as the price is attempting to firmly break above weekly cloud (cloud top lies at $48.61).
Near-term focus turns towards targets at: $49.43 (200SMA), psychological $50.00 barrier and $50.27 (29 May high).
Bulls so far ignore strongly overbought conditions of slow stochastic, however corrective easing could be expected before the price clears 200SMA barrier.
Res: 49.00, 49.43, 49.63, 50.00
Sup: 48.51, 48.18, 47.89, 47.50
