WTI oil price rose above important technical barrier at $58.62 (Fibo 61.8% of $60.96/$54.84 / daily cloud top) on Wednesday, extending advance for the fourth straight day.
Oil price accelerated higher in late Tuesday, boosted by API crude stocks report which showed crude stocks fell by 6 million barrels, with fresh strength being sparked by better than expected US EIA crude stocks report which showed 8.5 mln bls draw last week, well above forecasted fall of 2.5 mln bls.
Oil price rose ahead of Fed rate decision, as rate cut would prompt investors to divert capital into more inflationary assets, such as crude oil.
On the other side, technical studies on daily chart show signs of fatigue as momentum remains weak and stochastic is overbought that may result in unsuccessful attempt to break these key barriers.
Failure to break above cloud top would keep the price action in consolidation, with bulls expected to remain intact for renewed push higher while broken 20DMA $57.59 contains dips.
Firm break above $58.62 pivot is needed to confirm bullish stance for test of 100DMA ($59.31) and Fibo 76.4% barrier ($59.52).
Res: 58.62; 58.80; 59.31; 59.52
Sup: 57.95; 57.59; 56.90; 56.67
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