WTI oil holds positive tone on Wednesday and holding in tight range around $52.00 handle but without clear-near-term direction.
Underlying bull-trend remains intact but Tuesday’s close in long-legged Doji signaled indecision under fresh nearly three-week high at $52.35.
Upbeat release of API Crude stocks data on Tuesday (7.1 mln bls draw vs 4.2 mln bls draw forecasted) was not enough to push the price higher as concerns of supply disruption from Iraqi oilfields eased after Iraqi troops took control of Kirkuk area.
Also, overbought slow stochastic on daily chart weighs on near-term action and may generate bearish signal on reversal.
Focus turns towards EIA Crude stocks report, due later today. Forecasts show draw in crude inventories for 1.45 million barrels, signaling oil stocks fell for the fourth straight week, which is expected to be supportive for final push towards key barrier at $52.84.
Near-term action is supported by thick hourly cloud (spanned between $51.88 and $51.60) which should ideally limit downside attempts.
Deeper dips are expected to find ground at $51.00 zone (rising 20SMA).
Res: 52.15, 52.35, 52.84, 53.18
Sup: 51.88, 51.60, 51.20, 51.00
