HomeContributorsTechnical AnalysisTechnical Outlook: US CRUDE OIL – Extended Rally Cracks Key $57.90 Barrier

Technical Outlook: US CRUDE OIL – Extended Rally Cracks Key $57.90 Barrier

WTI Oil rose further on Wednesday, extending bullish acceleration of the previous day and cracked target at $57.90 (08 Nov former top).

Bullish near-term structure was boosted by disruption of Canada – US pipeline and API crude stocks report which showed bigger than expected draw in crude inventories.

Full retracement of $57.90/$54.80 pullback is bullish signal for continuation of broader uptrend, however, the price may show stronger hesitation to finally break higher on overbought slow stochastic on daily chart.

Consolidation should ideally stay above $57.00 handle (session low) with extended downticks to be contained by 10SMA ($56.42) to keep bulls intact.

Otherwise, increased downside risk could be expected on sustained break below 10SMA, with scenario being supported by bearish divergence, forming on daily RSI / MACD.

EIA weekly crude stocks report is in focus today. Inventories are expected to fall by 1.5 million barrels, compared to last week’s build of 1.8 million barrels. Release at forecasted level or below is expected to further boost oil price.

Close above $57.90 will be strong bullish signal.

Res: 57.96, 58.63, 59.08, 59.82
Sup: 57.51, 57.02, 56.42, 55.73

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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