WTI Oil holds firmly above $48.00 and probes above the top of thick daily cloud, following yesterday’s 4.4% rally (the biggest one-day rally since 30 Nov).
Strong bullish sentiment on announcement from Saudi Arabia about reducing exports in August and attempts from OPEC to support and possibly extend its output cut plan, boosted oil prices.
Strong bullish signal was generated on Tuesday’s break and close above $48.18 (Fibo 61.8% of $51.98/$42.04 descend) with close above daily cloud needed for further bullish signals.
Bulls may extend towards next strong barrier at $49.43 (200SMA) and may retest psychological $50.00 barrier in extension.
Meanwhile, corrective easing could be expected as slow stochastic is entering overbought territory on daily chart.
Broken 100 SMA ($47.95) marks solid support, followed by former tops at $47.72 and $47.30 and $46.80 (Fibo 38.2% of $43.63/$48.65 upleg / 10/55SMA bull-cross) which should contain extended dips.
Res: 48.65, 49.43, 49.63, 50.00
Sup: 48.18, 47.95, 47.72, 47.30
