Break of $43.58 or $40.00 pivotal points is needed to generate fresh direction signal
WTI oil price remains in directionless mode and holding within 80-pips range on Monday.
Rising tensions between the US and China and virus resurgence, weigh on oil price and offset positive impact from further weakness of US dollar.
Recovery rally from record lows in April shows signs of stall on long period of flat momentum on daily chart, while triple weekly Doji confirms strong indecision.
In addition, strong bullish momentum on weekly chart is offset by bearish divergence of weekly stochastic and reversal from overbought territory.
All these contributed to oil’s extended sideways mode in absence of stronger direction signal.
Bullish continuation needs break above $43.05/30 pivots (Fibo 61.8% of $65.63/6.52 / 200 DMA) to be confirmed, while break below ($40.58/00 (20DMA / psychological) would weaken near-term structure and risk pullback.
Res: 40.97; 41.35; 41.61; 42.00
Sup: 40.58; 40.00; 39.77; 39.05