WTI oil hit two-week high at $71.33 on Thursday on renewed probe through pivotal $71.17 barrier (Fibo 61.8% of $75.34/$64.43 descend).
Bulls remain firmly in play and look for extension of previous day’s strong rally, when oil price advanced 2.3%.
Oil rose on recent comments that Saudi Arabia is comfortable with higher oil prices, with Wednesday’s release of EIA crude inventories report which showed that crude stocks fell by 2.1 million barrels to new 3.5 year low, adding to bullish outlook.
Bullish daily techs are supportive, however, flat momentum may cause bulls troubles at key resistance zone.
Firm break above $71.17 Fibo barrier (after two recent attempts were strongly rejected at $71.25 and $71.38) is needed to signal continuation of recovery phase from $64.43 (16 Aug low) and unmask next barrier at $72.77 (Fibo 76.4%).
Conversely, repeated failure to close above $71.17 pivot would signal consolidation before fresh attempts higher, with bullish outlook expected above rising 10SMA ($69.35) which formed bull-cross with 20SMA.
Res: 71.33, 71.38, 71.64, 72.00
Sup: 70.40, 70.00, 69.46, 69.35
