WTI oil price remains in red on Thursday and extends weakness into a second day after being hit EIA surprise rise in US crude inventories (EIA report showed2.8 mln bls build vs 1.1 mln bls draw f/c).
The price remains holds two-week range ($58.16/$60.37) in extended consolidation after repeated failure to sustain break above psychological $60 barrier. Oil price remains supported by output reduction by world’s biggest oil exporters and US sanctions on Iran and Venezuela.
Current action could be seen as consolidation before broader bulls resume, however, risk of deeper pullback cannot be ruled out.
Flat momentum and stochastic so far support scenario of prolonged consolidation, but violation of range floor, reinforced by rising 20SMA would signal a double-top and signal stronger correction.
Res: 59.40, 60.00, 60.37, 61.00
Sup: 58.80, 58.16, 58.04, 57.55
