WTI oil consolidates within tight range under new nearly four-year high at $76.88 on Thursday. Strong bullish sentiment remains intact as fears about the impact on global supply on US sanctions on Iran offset much bigger than expected rise in US oil inventories. Also, announcement that Russia and Saudi Arabia made deal to raise oil output, so far had little impact on bulls. Today’s break above pivotal barriers at $76.35 (Fibo 61.8% of 107.45/$26.04 fall / Fibo 138.2% expansion of the third wave of five-wave cycle from $64.43) was strong bullish signal which needs confirmation on daily close above these barriers. Fresh bulls would look for test of $77.00 (23 Nov 2014 high) with extension of current wave towards its FE 161.8% at $78.02, not ruled out, as markets already speculates of attack at psychological $100 barrier in coming months. Bullish techs support scenario with overbought conditions being ignored for now, delaying consolidative / corrective action which should be anticipated in coming sessions. Extended dips should find support above rising 10SMA ($73.57) to keep bulls intact.
Res: 76.53, 76.88, 77.00, 78.02
Sup: 78.98, 75.00, 74.30, 73.57
