WTI Oil has eventually cracked strong resistance at $47.30 (former high of 04 July and strong upside rejection / base of thickening daily cloud), in extension of Wednesday’s strong rally, sparked by better than expected US weekly crude stocks data.
Bullishly aligned daily studies are supportive for further advance which requires break and close above $47.30 pivot to generate signal for extension of bull-leg from $43.63 (10 July trough).
Bullish continuation would open targets at $48.18 (falling 100SMA / Fibo 61.8% of $51.98/$42.04) and daily cloud top at $48.74. Lift above cloud would open way for recovery extension towards $49.50 (200SMA) and psychological $50.00 barrier.
Meanwhile, the price may enter extended consolidation on hesitation at key $47.30 barrier, as well as overbought slow stochastic on daily chart.
Broken 55SMA ($46.66) is expected to ideally contain dips and keep intact lower pivots at $45.95/$45.54 (rising 10 & 20 SMA’s) loss of which would generate bearish signal.
Res: 48.18, 48.74, 49.50, 50.00
Sup: 47.13, 46.66, 45.95, 45.54
