US Oil – bulls eye targets at $49.43 and 50.00

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI Oil is holding high levels and pressuring $49.00 barrier on fresh extension of strong rally from $45.39 (24 July trough). Oil price maintains firm bullish sentiment which was strongly boosted on Tuesday, when oil price rallied strongly on announcement of Saudi Arabia about reducing exports in August and was reinforced by Wednesday’s stronger than expected draw in US crude inventories.
Yesterday’s close above daily cloud was a bullish signal, as the price is attempting to firmly break above weekly cloud (cloud top lies at $48.61).
Near-term focus turns towards targets at: $49.43 (200SMA), psychological $50.00 barrier and $50.27 (29 May high).
Bulls so far ignore strongly overbought conditions of slow stochastic, however corrective easing could be expected before the price clears 200SMA barrier.

Res: 49.00; 49.43; 49.63; 50.00
Sup: 48.51; 48.18; 47.89; 47.50

Interested in Crude Oil technicals? Check out the key levels

1. R3 48.72
2. R2 48.69
3. R1 48.66
PP 48.63
1. S1 48.60
2. S2 48.57
3. S3 48.54

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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