- WTI surged past the $41.35-40 supply zone and climbed to over two-month tops on Wednesday.
- The momentum seems strong enough to push spot prices further towards the $43.50-55 hurdle.
- The emergence of some dip-buying should help limit the downside near the $42.00 round-figure.
WTI crude oil built on this month’s strong rebound from mid-$33.00s, or five-month lows and gained strong follow-through traction for the third consecutive session on Wednesday. The momentum pushed spot prices further beyond the $41.35-40 supply zone, to the highest level in more than two months.
Meanwhile, technical indicators on the daily chart have just started moving into the bullish territory and support prospects for additional gains. Hence, some follow-through strength beyond the $43.00 mark, towards testing the next major hurdle near the $43.50-55 region, looks a distinct possibility.
On the flip side, immediate support is now pegged near the $42.40-35 congestion zone. Any subsequent fall would still be seen as a buying opportunity and remain limited near the $42.00 handle. The latter should now act as a stop-loss level for fresh bullish positions.