WTI Oil cracks $64 barrier, underpinned by shrinking US stockpiles
WTI oil continues to trend higher and probed above $64 per barrel for the first time since December 2014.
Strong bullish sentiment over declining US stockpiles (the latest report on Wednesday showed draw of 4.94 million barrels vs forecasted draw of 3.89 million barrels) which extended for an eighth straight week, continues to underpin oil price.
US crude stocks approached five-year average of 420 million barrels which is supportive factor, along with OPEC-led production cut action.
The price is currently riding on extended wave C of five-wave sequence from $54.80, eyeing target at $64.27 (FE 200%) and capable of travelling to $65.88 (FE 238.2%).
Strong bullish setup of daily / weekly techs is overshadowed by overbought conditions on both timeframes which suggests corrective action could be anticipated in coming days.
Res: 64.06; 64.27; 65.00; 65.88
Sup: 63.42; 63.08; 61.84; 61.08