WTI oil price is consolidating in early Thursday’s trading after strong bullish acceleration in past two days peaked at $49.40.
Strong recovery rally from $45.57 low retraced 76.4% of $50.41/$45.57 pullback, as oil price received strong boost on increased demand after Texas refineries were restarted.
Technical studies on daily chart are in strong bullish setup but overbought slow stochastic suggests oil price may show hesitation ahead of key barriers at $49.65 (200SMA) and psychological $50.00 barrier.
Oil is awaiting release of EIA crude stocks data today (release was delayed for one day due to US Labor Day holiday on Monday) which may pressure the oil price as forecast for today shows a build of oil inventories by 4 million barrels after series of strong draws in previous few weeks.
On the other side, release of API crude stocks data on Tuesday showed build of 2.8 million barrels last week, compared to forecasted build of 4.0 million barrels.
Rising oil inventories signal lower price and the oil price may come under increased pressure on rising fears on impact from Hurricane Irma which is approaching the US coast and may interrupt oil shipments in and out the US.
Session low at $48.93 marks initial support followed by former highs at $48.72 and broken Fibo 61.8% barrier at $48.56.
Res: 49.40, 49.65, 50.00, 50.20
Sup: 48.93, 48.72, 48.56, 47.89
