Oil price rises on growing supply fears

WTI oil price jumped almost 1.5% in Asian / early European session on Wednesday on renewed oil supply fears after a deadly blast at a Gaza hospital further raised tensions in the region.

Fresh advance resumes the rally from Oct 6 low ($81.52) after a two-day consolidation and generating bullish signal on break of pivotal barrier at$88.26 (daily Kijun-sen / 50% retracement of $95.00/$81.52 bear-leg).

Close above this barrier to reinforce near-term structure for acceleration towards next key resistances at $89.85/$90.00 (Fibo 61.8% / psychological).

However, mixed technical studies on daily chart continue to warn as 14-d momentum is in negative territory and stochastic is overbought, though rising daily Ichimoku cloud continues to underpin the action and MA’s turning to bullish configuration and partially offset negative signals.

Immediate bullish bias is expected to remain intact while supports at $88.26/$87.72 (Fibo 50% / 20DMA) hold, but increased downside risk seen on potential break and close below broken Fibo 38.2% ($86.67).

Res: 89.05; 89.85; 90.00; 91.00
Sup: 88.26; 87.72; 86.67; 85.59