WTI oil price dipped after much stronger than expected build in weekly crude stocks (7.9 mln bls vs 1.5 mln bls f/c) data showed on Wednesday.
Strong rally extended into fourth straight day and peaked at $57.83 today (the highest since 24 Sep), but repeatedly failed (Mon/Tue) to close above cracked strong barrier, provided by 200DMA at $57.34.
Today’s fresh easing from the third consecutive higher high may result in another close below 200DMA, which would generate initial negative signal.
Fading daily bullish momentum and overbought stochastic, support scenario, but are conflicted with bullishly aligned MA’s.
Repeated failure at 200DMA would increase risk of stall, however, dip below widening daily cloud ($56.80/63) which twisted today would be required for stronger bearish signal.
Conversely, eventual close above 200DMA would generate initial signal of bullish continuation.
Res: 57.34; 57.83; 58.00; 58.46
Sup: 57.02; 56.76; 56.63; 56.03
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