US oil is maintaining strong bullish sentiment and extends gains on Wednesday. Strong rally of the previous day started after brief probe below psychological $50.00 support proved to be short-lived and stronger bullish acceleration was triggered by stronger than expected draw in US crude stocks.
American Petroleum Institute data, released on Tuesday, showed surprise fall of 1.8 million barrels in crude stocks vs forecasted draw of 0.5 million barrels and 1.9 million barrels build previous week.
Initial signs of gradual tightening in global /rates-charts/dbwti/trading-positions inventories and concerns about a supply outage from North Sea oil fields, gave strong boost to the oil prices.
Resumption of broader recovery rally from $47.06 base on Tuesday’s 1.7% gains and close above $51.00 handle, was seen as strong bullish signal for today’s fresh extension higher.
WTI contract for May delivery hit the highest level in nearly one month and pressuring next barrier at $51.68 (55SMA), break of which would open next pivot at $51.97 (Fibo 61.8% of $55.01/$47.06 descend).
However, strongly overbought slow stochastic on daily chart warns of possible hesitation ahead of key barriers, but no firmer bearish signal being generated so far.
Broken 100SMA marks initial support at $51.29, ahead of session low at $51.10 and broken daily Kijun-sen at $50.73, which should contain extended dips.
Res: 51.68, 51.97, 52.53, 52.90
Sup: 51.29, 51.10, 50.73, 50.10
