WTI oil came ticks ahead of psychological $50 barrier on extension of yesterday’s strong rally.
Oil price was boosted by oil stocks reports that showed lower than expected build in US stockpiles; supply disruption in Libyan oil fields and rumors that OPEC’s production cut deal could be extended beyond June 2017.
Strong rally that extends into third straight day improved oil’s technical outlook, as the price regained strong bullish momentum.
The price is looking for clear break above psychological $50.00 barrier and $50.10 (Fibo 38.2% of $55.00/$47.07 descend) to extend recovery from $47.07 double-top.
Daily close above these pivots is needed to confirm bullish continuation and expose next target at $51.00 (daily Kijun-sen line).
Meantime, overbought studies suggest correction, as $50.00 marks very significant resistance.
Session low at $49.28 marks solid support, reinforced by rising 4-hr SMA and guarding strong support at $48.80 (200SMA).
Res: 50.00; 50.53; 51.00; 51.14
Sup: 49.50; 49.28; 48.80; 48.59
