Bulls consolidate after cracking psychological $60 barrier
WTI oil consolidates under new four-month high at $60.31, following Wednesday’s bullish acceleration through psychological $60 barrier.
Oil rallied after surprise strong draw in oil inventories (-9.5 mln bls vs 0.3 mln bls build f/c) and was additionally boosted by fall of US dollar after strongly dovish Fed.
OPEC+ group decision to stick to agreed output cut policy and even to increase reduction, along with existing US sanctions against Iran and Venezuela, keep oil price well supported.
Bulls look for close above cracked $60 barrier (Wed close was at $59.98) to generate fresh signal for extension towards next target at $61.76 (200SMA).
Rising bullish momentum and positive setup of daily MA’s continues to underpin, however, further price adjustment cannot be ruled out as daily slow stochastic is overbought and turns lower.
Rising 5SMA offers immediate support at $59.34, with stronger easing expected to find footstep above 10SMA ($58.33) and keep bulls intact.
Res: 60.00; 60.31; 61.00; 61.76
Sup: 59.67; 59.34; 58.57; 58.33