Recovery extends as strong downside pressure eases on output cut hopes

WTI oil price holds in green for a third straight day and extends recovery after 12-day uninterrupted fall.
Hopes that OPEC may cut production and stabilize oil price which held in steep descend for six consecutive weeks, marking over 20% fall, so far offset negative signals from another strong rise in US oil inventories (API 8.79 and EIA 10.27 mln bls build).
Profit-taking after strong fall and reviving daily indicators, deeply in oversold territory, could help recovery.
Initial bullish signal could be expected on Friday’s close above cracked weekly cloud base, after strong downside rejection just under key Fibo support at $55.35 (61.8% of $42.04/$76.88).
North-turning daily indicators show a plenty of space at the upside for extension towards pivotal barrier at $59.11 (falling 10SMA), break of which would firm near-term bulls for further recovery.
The recovery would strongly depend of improvement of very negative short-term sentiment and may stall if major oil producers do not proceed with freshly announced plans for output cut.
Res: 57.86; 59.11; 60.00; 61.27
Sup: 56.61; 55.57; 55.35; 54.74