Oil price on track for strong bullish weekly close following rally on unexpected fall in US crude stocks
WTI oil maintains firm tone and consolidating under new one-month high at $56.49, posted on Thursday after three-day rally, which resulted in 4.7% rise.
Oil prices were boosted by surprise decline in US oil inventories, as well as optimism about OPEC+ action in supporting oil prices by reducing output.
WTI contract is on track for strong bullish weekly close (up around 4.5% for the week) which also supports positive outlook.
Repeated close above $55.57/77 pivots (Fibo 38.2% of $63.12/$50.91 / 100DMA) generated fresh bullish signal for further advance.
Overall near-term sentiment remains positive, with daily studies maintaining strong bullish momentum and supporting scenario.
Friday’s close above 100DMA would confirm positive stance and keep the way towards next targets at $56.80 (daily cloud base) and $57.23 (200DMA) open.
Broken pivots at $55.77/57 and converging 55/30/5 DMA’s at $55.34/18 zone, mark solid supports which are expected to hold and maintain bullish bias.
Res: 56.49; 56.80; 57.02; 57.23
Sup: 55.77; 55.57; 55.18; 54.36