Brent price was slightly lower on Wednesday, consolidating Tuesday’s 1.2% rally, with negative impact from IMF’s lowered global growth forecast being partially offset by concerns about the hurricane that approaches the coast of Florida.
Closure of oil platforms and refineries in the region could further boost oil prices which remain supported by bullish techs.
Completion of reversal pattern on daily chart, with rising 10SMA ($84.21) is supportive, along with rising bullish momentum.
Recovery attempts face headwinds from Fibo barrier at $85.17 (61.8% of $86.73/$82.65 pullback) which was cracked on Tuesday but without sustained break.
Close above here is needed to confirm reversal and shift focus towards next obstacle at $85.77 (Fibo 76.4%).
Bullish tone also prevails on lower timeframes, supporting further recovery.
Release of US API crude stocks report alter today is eyed for fresh signal, with focus turning towards tomorrow’s EIA weekly crude inventories report (2.64 mln bls build f/c vs previous week’s build of 7.97 mln bls) which is expected to provide stronger signal.
Res: 85.17, 85.43, 86.70, 86.73
Sup: 84.21, 83.71, 82.84, 82.65
