WTI oil price regained traction in European trading and recovered overnight’s mild correction which bottomed at $49.14. The price remains firmly in green for the fourth straight day and broke today above previous high at $49.40, pressuring strong barrier at $49.60 (200SMA) en-route towards psychological $50.00 barrier. Negative US crude stocks data on Wednesday which showed strong build in oil inventories by 5.8 million barrels vs forecasted build of 3.2 million barrels, had little impact on oil price and were offset by report from EIA which estimated that global demand for oil will climb by the most since 2015. Oil price extends its near-term rally from $45.57 trough, on track for probe above $50.00 and attempts towards previous high of 01 Aug at $50.41, to complete $50.41/$45.57 bear-phase. Bullish technicals remain supportive but the price may show hesitation on approach to $50.00 target as slow stochastic is entering overbought territory. Rising 10SMA continues to underpin the action (currently at $48.44) and should ideally contain corrective dips.
Res: 49.60, 50.00, 50.20, 50.41
Sup: 49.14, 48.44, 47.91, 47.59
