Oil price extended bounce from Tuesday’s spike low at $47.08, boosted by weaker dollar and fall in US crude inventories. Recovery extended for the third consecutive day and peaked at $49.61, threatening key barrier at $50.00 (daily cloud base/psychological resistance), after closing above another important point, 200 SMA at $48.70 on Wednesday. However, risk of recovery stall persists, as daily studies are still bearish and concerns of global oversupply keep oil price under pressure. Stall of recovery rally (also fourth wave of five-wave cycle from $55.01) under $50.00 barrier would generate bearish signal and commence the fifth wave, which could travel back to $47.08 low. Today’s close below 200SMA would be seen as negative signal that may trigger fresh acceleration lower.
Res: 49.00; 49.61; 50.00; 50.43
Sup: 48.55; 48.05; 47.68; 47.08
