WTI oil price moved lower on Thursday, consolidating previous day’s over 3% rally, as rising concerns over US-China trade conflict offset positive impact of unexpectedly strong fall in crude stocks (EIA report on Wednesday showed draw of 5.83 million barrels vs 1.49 million draw forecasted, while API report on Tuesday showed fall in crude stocks by 5.17 million barrels vs previous week’s 3.66 million barrels build).
Overbought slow stochastic and neutral momentum, which failed to break into positive territory, support corrective action, which so far holds above initial support at $67.44 (20SMA).
Extended dips should find footstep above $66.70 (Fibo 38.2% of $64.43/$68.10 rally) to keep near-term bulls in play for fresh upside action.
Strong barriers lay at $68.52/70 zone (converged 10/55SMA’s / Fibo 38.2% of $75.34/$64.43 descend), break of which would generate strong bullish signal for continuation of recovery rally from $64.43 (16 Aug low).
Res: 68.10, 68.52, 68.70, 69.35
Sup: 67.44, 67.23, 66.70, 66.27
