24 August, 2017
WTI oil is trading in consolidation mode on Thursday following strong rally on Wednesday after US crude stocks report showed further fall in inventories by 3.3 million barrels. Oil price rallied over 1% on Wednesday and hit high at $48.48.
South-turning 20SMA limited action and acting as initial resistance at $48.56, marking pivotal resistance zone with former highs and double-rejection at $48.72 and Fibo 61.8% of $50.41/$46.44 downleg at $48.89.
Daily studies are bullishly aligned and keep focus at the upside for eventual attack at $48.56/89 zone. Meantime, corrective easing should stay above $48.74 (converged 10/100 SMA’s) to keep near-term bulls in play. Increased downside risk could be expected on break here that would re-expose strong support $47.01 (daily cloud top).