Oil price is consolidating under new high at $67.43 (the highest since early Dec 2014) on Thursday, following strong rally in past three days, when oil price advanced over 7.5%.
Escalating geopolitical risk on escalation of tensions in the Middle East keeps the oil price well supported, as surprise strong build in US crude stocks (3.3 million barrels build vs 0.6 million barrels draw forecasted) had a minor impact on oil price.
Completion of $66.64/$58.06 corrective phase and close above $66.64 (25 Jan former high), generated bullish signal for extension of recovery phase from $26.04 (11 Feb 2016 low), as bulls cracked next barrier at $66.75 (Fibo 50% of $107.45/$26.04 fall).
Sustained break higher could travel towards psychological $70 barrier (also Fibo 138.2% projection of the bull-leg from $58.06).
Bullish daily techs support scenario, however, oil price may hold in extended consolidation and even dip lower on overbought conditions and profit-taking action, while situation in the Middle East stays unchanged.
Deeper pullback should be contained at $65.00 zone to keep bullish structure intact for fresh advance.
Signals of scalation of geopolitical tension would send oil price immediately higher.
Res: 67.00, 67.43, 68.63, 69.00
Sup: 66.51, 66.10, 65.28, 65.00
