- US oil clocked fresh multi-year highs above $73 a barrel overnight.
- Oil prices spiked higher as EIA data reports biggest weekly drop in U.S. crude supplies year to date.
- U.S. crude stocks fell by nearly 10 million barrels last week as refineries hiked output, the Energy Information Administration said on Wednesday.
- Data widely missed analysts’ expectations for a decrease of 2.6 million barrels.
- Black Gold continues surge as US-Iran trade tensions keep prices underpinned.
- Price is extending consolidation after previous session's spike. Bias remains higher.
- Technical indicators on daily charts support upside. Price has broken out of daily cloud.
- Stochs have entered overbought zone, but RSI has room to run further.
- We see immediate support at 1H 21-EMA at 72.04. Break below 1H 55-EMA at 70.80 to see some weakness.
- On the top side, we see scope for test of 76.49 (61.8% Fib retracement of 107.65 to 26.08 fall).
Call update: Our previous call (https://www.econotimes.com/FxWirePro-US-Oil-edges-above-71-US-Iran-trade-tensions-keep-prices-underpinned-1392033) has hit all targets.
Recommendation: Book partial profits at highs, stay long for 74.70/ 75/ 76.49
