WTI Oil price eases on Thursday, pressured by stronger dollar and another build in crude oil inventories, which rose by 4.5 million barrels last week, beating forecast for build of 3.49 million barrels.
Bulls are taking a breather after eight straight days in green that pushed oil price to fresh four-month high at $51.09 on Wednesday.
Oil price remains well supported, with recent comments that OPEC and top oil producers outside the cartel are considering an extension of output cut, offering additional support to oil price.
Current easing is seen as corrective action and positioning for further advance, with pullback to ideally hold above psychological $50 level and extended dips not to exceed strong support at $49.55 (broken 200SMA / Fibo 38.2% of $46.99/$51.09 upleg).
Oil price is currently riding on the third wave of five-wave cycle from $45.57, which cracked it 100% Fibonacci expansion at $50.83 and may extend to $51.74 (FE 123.6%) on sustained break above $50.83 pivot.
Res: 50.83, 51.09, 51.55, 51.74
Sup: 50.35, 50.00, 49.55, 49.04
