WTI oil rose nearly 2.5% on Wednesday, in reaction to rising optimism in the market that US/China trade dispute may be resolved.
Fresh bullish acceleration eventually broke above pivotal barriers at $49.89 (Fibo 61.8% of $54.54/$42.36) and psychological $50 barrier and cracked $51.00 level in extension.
Relief on hopes of solution for trade problem sidelines fears of reduced global demand, with sustained break above $50 zone, expected to generate bullish signal for stronger recovery of Oct/Dec 44% fall.
Bulls hit falling 10WMA ($51.07) and could extend towards 200WMA ($52.25).
Fresh bullish sentiment is also supported by stronger than expected draw in US crude stocks (API report showed 6.2 mln bls draw vs 4.5 mln bls draw last week) with focus on EIA report, due later today and forecasted for 2.8 mln bls draw.
Res: 51.07, 51.67, 52.25, 53.24
Sup: 50.51, 50.00, 49.89, 49.17
