FxWirePro: US Oil declines on oversupply concerns, good to sell on rallies

• Pattern Formed – Shooting Star
   
• Major resistance- $49.35 (161.8% retracement of $46.79 and $42.90)
   
• US oil has declined after making a high of $49.27 on account of strong USD and firm global supply will continue to outpace demand.
   
• Supply disruption in North America and Africa have been largely responsible for recent spike in oil price.
   
• But number of rigs operated by U.S drillers was steady last week for the first time this year indicates abundant supply .
   
• Technically the commodity has facing strong resistance at $49.35 (161.8% retracement of $46.79 and $42.90) and any further bullishness only above that level.
   
• US oil has declined till $47.66 at the time of writing. It is currently trading around $47.83.
   
• On the higher side minor resistance is around $48 and break above targets $48.60/$49/$49.35.
   
• The major support is around $47 (10 day MA) and break below $46/$45.

It is good to sell on rallies around $48-$48.10 with SL around $49.35 for the TP of 46.70/$45