WTI oil price is back above $50 on Tuesday and looking for retest of last week’s new high at $50.48 (the highest since 25 May).
Upside attempts in past three days were repeatedly rejected (Bullish candle with long upper shadow on 14 Sep and two long-legged Dojis on Fri / Mon) suggesting that bull-leg from $46.99 (11 Sep trough) might be running out of steam.
Sustained break higher is needed to signal extension of the bull-leg from $46.99 which is also the third wave of five-wave sequence from $47.57 (31 Aug low) towards its 100% Fibonacci expansion at $50.83.
Bullish technical studies and positive sentiment are supportive for further upside, but markets are eyeing for further signals from US crude stocks reports (API is releasing its report late today and EIA on Wednesday) with both reports showing build in oil inventories in past two weeks.
Meeting between OPEC members and other oil producers is scheduled on Friday and is in focus as oil producers are expected to talk about possible extension of oil production cap.
Broken 200SMA now offers solid support at $49.57, followed by lows of Monday / last Thursday at $49.14, reinforced by rising 10SMA.
Res: 50.48, 50.83, 51.00, 51.74
Sup: 50.00, 49.77, 49.57, 49.14
