WTI OIL Outlook: Bulls Look For Extension After Break Of 100SMA But Risk Of Pullback Exists

Technical analysis of Forex market

WTI oil consolidates below new 2019 high ($57.58) on Thursday, after Wednesday’s advance eventually broke above falling 100SMA ($56.74) which obstructed bulls in past two days.

Prevailing bullish sentiment was boosted by fresh optimism over US/China trade conflict on news that signaled that two countries are step closer to reach deal.

API report, released on Wednesday, showed increase in US crude stocks by 1.3 mln bls, below expected build of 3.5 mln bls that additionally boosted oil price.

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Daily techs send mixed signals as MA’s are in bullish configuration, but stochastic is strongly overbought and bullish momentum is weakening. According to the studies, risk of corrective action remains on the table, but so far without any firmer signal. Broken 100SMA offers solid support at (currently at $56.56) and guards strong supports at $55.73/55 (former high/broken Fibo 38.2%).

EIA crude inventories report is due later today (3 mln bls build vs 3.6 mln bls build previous week) and could provide fresh signals.

Res: 57.58, 58.14, 59.62, 60.00
Sup: 56.95, 56.56, 55.73, 55.55

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