US oil remains steady on Wednesday and continues to trend higher, approaching round-figure barrier at $52.00. Bull-leg from $48.02 (17 May trough) extends into sixth straight day of gains, as bullish technicals and strong expectations that OPEC will verify agreed extension of production cut for another nine months, keep the price well supported. OPEC and other major oil producing countries will meet on Thursday in Vienna to make a final decision whether to extend their current output cut program which end at the end of June. Positive decision from oil producers would give an additional boost to oil prices for possible extension towards $53.74 (12 Apr high). Tuesday’s break and close above pivots at $51.10/38 (100SMA/Fibo 76.4% of $53.74/$43.74) generated bullish signals, with former barriers now acting as supports. Strongly overbought slow stochastic on daily chart warns of correction in the near –term, but no firmer bearish signals being generated so far.
Res: 52.00, 52.62, 53.18, 53.37
Sup: 51.38, 21.10, 50.56, 50.00
