WTI oil price surged on Tuesday as refineries in the Gulf of Mexico started to gradually restart after being shut down by Hurricane Harvey.
Demand for crude oil started to raise on restart of refining capacities and boosted oil price.
Fresh acceleration took out important barrier at $47.99 (daily Kijun-sen) and met next target at $48.72 (18/21 Aug tops), signaling further retracement of $50.41/$45.57 descend), as rally broke above its Fibo 61.8% retracement at $48.56.
Close above the latter is needed to confirm and turn near-term focus towards psychological $50.00 barrier.
Daily studies turned into positive setup on the latest rally and along with bullish fundamentals are supportive for further advance.
Oil price is eyeing initial barrier at $49.65 (200SMA) which guards $50.00 target and recent highs at $50.18/20 (weekly cloud top / 10Aug high) and $50.41 (01 Aug peak).
Profit taking on today’s strong rally and overbought studies could trigger corrective easing, with broken Kijun-sen, now reverted to support, expected to ideally contain dips.
Res: 49.27; 49.65; 50.00; 50.20
Sup: 48.56; 47.99; 47.42; 47.15
