WTI oil price eases further from new five-month high at $62.96 as bulls were hit by surprise build in US crude inventories (EIA report on Wednesday showed build of 7.2 mln bls vs forecasted draw of 0.4 mln bls and previous week’s build of 2.8mln bls).
Bulls also faced strong headwinds from weekly cloud base ($63.00) with corrective easing being also signaled by strongly overbought daily stochastic.
Overall picture remains positive on OPEC+ action in reducing output, US sanctions and fresh positive signal about continuation of US/China trade talks that reduces concerns about global demand.
Current easing is seen as positioning for fresh upside with broken 200SMA ($61.45) expected to ideally contain and prevent deeper pullback on break.
Rising 10SMA marks next significant support at $60.63, where extended dips should find ground and keep bulls in play for fresh attempt towards target at $63.69 (Fibo 61.8% of $76.88/$42.36).
Res: 62.96, 63.69, 63.87, 64.43
Sup: 62.04, 61.88, 61.45, 60.63
