Strong two-day rally on Monday and Tuesday (the contract was up 9.6%), which erased the most of Aug 12-20 steep fall, was capped by daily cloud base and bulls are taking a breather on Wednesday.
Fresh bulls started to lose traction on news that Mexico is going to resume production, disrupted by a fire on oil platform that resulted and smaller than expected fall in US crude stocks (API report), but expected to remain in play as global oil market is heavily in deficit.
Two massive bullish candles (Mon/Tue) underpin the action, along with improving daily studies.
Shallow consolidation was contained by 20DMA’s, keeping bulls intact for renewed probe through cloud base ($71.18) and attack at 12 Aug lower top ($71.87) which guards next pivot at $72.35n (cloud top).
Res: 71.52, 71.87, 72.41, 72.70.
Sup: 70.48, 70.00, 68.99, 68.49.
