Oil price closed higher on Wednesday, but remains below $50/bbl. Official report from US government showed that US oil stock is declining and it has given strength to oil price.
The Energy Information Administration (EIA) on Wednesday reported that the US crude inventories declined 3 million barrels at the week that ended at September 30. Although the number is smaller than the American Petroleum Institute’s number, which reported a minus 7.6 million barrels, the EIA report still became reason for positive sentiment that supported the oil price.
Oil price remains in upward trajectory. We can see some correction, approaching the intraday support area at 49.54-48.89. Hourly stochastics is oversold but note that CCI is falling. Today, you might want to wait for bullish signal confirmation on a pull-back move to within the support area before taking long position with 49.94 as target and 50.34 in extension.
Be careful if the price managed to break support 48.89 because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 48.64-48.24.
– Buy on bullish signal confirmation within 49.54-48.89; target at 49.94 or 50.34