Oil price extend advance through strong 100/200SMA barriers
WTI oil maintains bullish firm bullish tone and extends advance through key barriers at $58.80 (converged 100/200SMA on track to form bull-cross) on Wednesday.
The sentiment was boosted by strong draw in US crude stocks (API report on Tuesday showed draw of 7.5 mln bls vs previous week’s draw of 0.8 mln bls) and positive tones from US/China trade talks, as recent tensions in the Middle East continue to inflate oil prices.
Markets await release of US EIA crude inventories report, due later today (-2.5 mln bls f/c vs -3.1 mln bls previous week) which could further boost the price on stronger than expected drop in crude stocks.
OPEC meeting about extension of production cut nears, with focus on the meeting of Russian President Putin and Saudi Crown Prince Mohammed Bin Salman on G20 meeting this weekend, when two leaders will discuss the extension of the deal.
Bulls for now ignore overbought conditions and weaker momentum and pressure immediate resistance at $59.60 (falling 55SMA) which guards psychological $60 barrier, with stronger bullish acceleration expected to challenge pivotal Fibo barrier at $60.47 (61.8% of $66.58/$50.59).
Daily cloud lays above and twists tomorrow, which would also attract bulls.
Broken 100/200SMA’s now reverted to supports ($58.80), followed by broken Fibo 50% barrier at $58.59, with daily close above 100/200SMA’s needed to confirm bullish stance.
Res: 59.60; 60.00; 60.47; 61.00
Sup: 58.80; 58.59; 58.08; 57.19