WTI Oil maintains firm tone for the third day and establishes above $51.00 per barrel. Oil price was up 3.07% on strong rally on Tuesday (the biggest one-day rally since 25 Sep) and closed well above psychological $50.00 barrier.
Strong bullish sentiment on signs that oil market is rebalancing after years of oversupply, inflated oil prices.
Fresh extension higher on Wednesday eyes pivotal barrier at $51.41 (Fibo 61.8% of $52.84/$49.09 pullback) close above which would generate bullish signal for further upside after higher low has been formed at $49.09 (06 Oct low).
Rally may extend to $51.96 (Fibo 76.4%) with final stretch towards $52.84 (28 Sep peak) also being in play.
Broken 20SMA ($50.67) is expected to keep the downside protected.
Focus is on API crude inventories report, due later today and EIA weekly crude stocks report tomorrow, which are expected to show further draw in oil inventories which would offer fresh support to oil prices.
Reports have been delayed one day due to US market holiday last Monday.
Res: 51.41, 51.96, 52.41, 52.84
Sup: 51.00, 50.85, 50.67, 50.52
