WTI crude oil breaks 57.98 resistance earlier today to resume the rally from 42.05. Further rise is seen after EIA reports that US crude supplies dropped by -3.9m barrels in the week ending March 8, versus expectation of 2.7m barrels rise.
Technically the strong support from rising 55 day EMA is a bullish sign. But upside momentum is unconvincing as seen in daily and 4 hour MACD. Thus, we’d expect strong resistance from 50% retracement of 77.06 to 42.05 at 59.55 to limit upside.
This level is also close to 55 week EMA at 59.23.