WTI OIL extends rally on repeated inventories draw; signs of tightening

US CRUDE OIL

WTI Oil hit new high at $51.62 on Friday (the highest since 02 Oct) as bulls regained control after the price dipped to $50.14 low on Thursday.
Fresh support came from EIA crude stocks report which showed the third consecutive decline in crude inventories which fell by 2.75 million barrels in the week ended 6 Oct.
In addition, the oil prices were driven higher by rising bullish sentiment on global signs that the oil market is tightening.
Eventual break above $51.40 pivot (Fibo 61.8% of $52.84/$49.09 downleg) is bullish signal which requires close above for confirmation.
Fresh bulls eye target at $51.96 (Fibo 76.4%) and could extend towards key barrier at $52.84 (28 Sep peak) on further bullish acceleration.
Overbought slow stochastic and still negative 14d momentum require caution of possible stall.
Top of thick 4-hr cloud marks solid support at $50.97, along with broken 20SMA ($50.80) which should keep the downside protected, while extension below 10SMA / Tenkan-sen ($50.43/36) would weaken near-term tone and shift bias lower.

Res: 51.62; 51.96; 52.41; 52.84
Sup: 51.40; 50.97; 50.80; 50.36

Us Crude Oil

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.