Brent oil extends strong bullish acceleration from Tuesday (the biggest one-day gains since 20 Jan), gaining slightly over 1% in early Wednesday’s trading.
Tuesday’s strong rally closed well above $53.98 (Fibo 61.8% of larger $56.62/$49.70 fall), generating strong bullish signal that resulted in fresh bullish extension that is approaching next barrier at $54.99 (Fibo 76.4% retracement).
Daily technical studies are now in full bullish setup and supportive for further upside action. Break above $54.99 would open way towards key short-term barrier at $56.62 (07 Mar high).
Minor resistance en-route is thin daily cloud that twists next week and would also support bulls.
Broken 55SMA offers immediate support at $54.37, followed by session low at $54.19 and strong supports at $53.98/87 (broken Fibo 61.8% / broken 100SMA) which should contain extended dips, as strongly overbought daily chart slow stochastic suggests a pause in strong rally, but no firmer bearish signal being generated so far.
Res: 54.99, 55.75, 56.06, 56.62
Sup: 54.37, 53.98, 53.87, 53.37
