Crude oil price keeps on rising in US session after official report showed that oil supply fell more than expected.
US Energy Information Administration (EIA) reported that domestic oil supply fell as much as 4.1 million barrels last week. Economists expected a decline only 2.4 million barrels. In the same time.
Oil price is testing intraday key resistance at 49.28. Hourly stochastic and CCI are overbought; CCI is falling. 20 MA has crossed above 50 MA and rising.
Here is some possible scenario: oil price possibly will continue its bullish move if it managed to break above 49.28, with 49.90 as target and 50.45 in extension. However, if we can get clear bearish signal confirmation before the breakout occurs, we might see some correction move towards the 50% Fibonacci at 102.191.
As alternative scenario, watch for bullish signal confirmation on a pull-back move to Fibonacci support area at 48.34-47.77 with 48.70 as target and 49.28 in extension. Be careful, as a break below 47.77 will turn the intraday bias bearish and possibly will be followed by deeper bearish move to 47.41-46.83.
– Buy on break of 49.28; S/L @ 48.70, T/P @ 49.90 & 50.45 in extension
– Buy on bullish signal confirmation to within 48.34-48.70; S/L @ 47.40, T/P @ 48.70 & 49.28 in extension
Good luck, Traders.