WTI OIL remains supported; EIA data expected to boost the price further on fresh crude stocks draw
Oil price remains supported on Wednesday and ticked higher to probe above Fibo barrier at $57.79 (61.8% of $59.02/$55.81 downleg), which repeatedly capped upside attempts in previous sessions.
API crude stocks report, released on Tuesday, showed bigger than expected draw in oil stocks (5.22 mln bls vs 3.20 mln bls draw f/c), keeping oil price supported together with North Sea pipeline outage.
Today’s EIA crude inventories report is in focus, as traders expect another fall in US crude stocks (forecast for the past week is for draw of 3.76 mln bls) which would offer fresh support to oil price.
Close above $57.79 Fibo barrier will be bullish signal for extension towards $58.26 (Fibo 76.4%) and $58.54 (12 Dec high).
Rising daily Tenkan-sen ($57.31) underpins near-term action, while daily Kijun-sen (56.94) marks lower pivot, break of which will be bearish signal.
Res: 57.86; 58.26; 58.54; 58.86
Sup: 57.64; 57.31; 56.94; 56.53