Oil price closed higher on Wednesday after data from US government showed that crude oil inventories unexpectedly fell. Energy Information Administration reported that domestic crude oil supply fell as much as million 6.2 barrels in the week that ended at September 16. Analysts expected a raise of 2.8 million barrels based on a survey by S&P Global Platts. The number, however, is smaller than report released by American Petroleum Institute (API) on Tuesday that reported that the supply fell 7.5 barrels.
Oil price currently is in upward trajectory. 20 MA has crossed above 50 MA on hourly chart and the price currently is moving below the MAs. Our intraday key resistance currently is at 45.65. If the resistance breaks, oil possibly will continue its rally up to 46.27-46.95.
Note that hourly stochastic and CCI are overbought. Therefore, as alternative strategy, you might want to look for bullish signal confirmation on a pull-back move to within 45.03-44.34 with 45.65 as target and 46.27 in extension.
Be careful if the price managed to break support 44.04 because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 43.66-43.04.
– Buy on break of 45.65; target at 46.27 or 46.95
– Buy on bullish signal confirmation within 45.03-44.34; target at 45.65 or 46.27