Oil price was closed higher on Tuesday as supply disruption in Nigeria remains and signs of increasing global demand. Weaker USD because of Yellen’s dovish statement on Monday also behind the surge of oil price. However, market worries that the surge could trigger higher output. 

West Texas Intermediate for July delivery was up 67 cents or about 1.4%, closed at $50.5/barrel in Nymex. It was the highest closing price since July 2015. 

Oil price currently is testing technical intraday key resistance at 50.51. 20 MA and 50 MA are rising on hourly chart, indicating that the intraday bias remains strongly bullish. If the price managed to break the key resistance, oil price possibly will continue the rally up to 50.89-51.21. However, note that hourly stochastic has crossed down and CCI is falling from its overbought area. Therefore, as alternative strategy, watch for bullish signal confirmation on a pull-back move to support area at 49.80 (50% Fibonacci) to go long with 50.18 as target and 50.51 in extension.
Be careful if the support 49.80 breaks because it will turn the intraday bias to bearish and possibly will be followed by bearish move to 49.40-49.10.

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