WTI oil ticked higher on Thursday, boosted by renewed fears of US re-imposing sanctions against Iran, which would further tighten global oil supplies.
In addition, drop of oil production in Venezuela on economic and political uncertainty, added to fresh support to oil prices.
Oil moved higher despite surprise build of US crude stocks (EIA report showed oil inventories rose 2.17 million barrels vs 1.6 million barrels draw forecasted).
Wednesday’s repeated downside rejection left double-top at 67.12/10, which also marks formation of higher base after pullback from new high at $69.54 stalled.
Repeated close above rising 10SMA which tracks ascend in past two weeks, was another positive signal.
Today’s recovery extension retraced over 50% of $69.54/$67.10 pullback, with close above $68.61 (Fibo 61.8%) needed to generate stronger reversal signal.
Ascending 10SMA offers solid support (currently at $67.80) which is expected to hold and keep bullish near-term stance intact.
Res: 68.61, 69.00, 69.36, 69.54
Sup: 67.95, 67.80, 67.53, 67.10
