WTI oil price rose on Wednesday, keeping bullish near-term bias and extending gains into third straight day.
Fundamentals were boosted by unexpected fall in crude stocks (Tuesday’s API report showed draw of 5.17 million barrels compared to last week’s 3.66 million barrels build) and rising concerns about the impact of US sanctions on Iran.
Improving technical studies add to positive outlook, as the price broke above 10SMA (which turned sideways and currently at $66.42).
Bulls eye next pivot at $66.85 (Fibo 61.8% of $68.35/$64.43) break of which would open way towards falling 20SMA ($67.48).
US EIA crude stocks report is in focus today (1.49 million barrels draw f/c vs 3.56 million barrels build last week) which is expected to maintain near-term bullish bias if data come in line / above expectations.
Stronger bullish acceleration could be expected on surprise (bigger than expected draw in crude inventories).
Supports at $66.21 (10SMA) and $65.93 (session low / broken Fibo 38.2% of $68.35/$64.43 bear-leg) are expected to hold and keep near-term bulls in play.
Res: 66.85, 67.48, 67.89, 68.35
Sup: 66.21, 65.93, 65.30, 64.78
