Bulls consolidate under pivotal Fibo barrier after 5.5% advance
WTI oil is holding within narrow range just under new two-month high ($58.61) on Friday and consolidating after 5.5% rally in past two days.
Strong draw in US crude stocks last week (the biggest fall in three months) boosted oil prices, with signs that OPEC+ group is likely to extend its current production cut agreement until mid-2020, gave strong boost to oil prices in previous two sessions, but persisting uncertainty over possible US/China trade deal limited the advance.
Thursday’s rally cracked pivotal Fibo barrier at $58.46 (61.8% of $63.12/$50.91), looking for strong bullish signal on close above that would open way towards psychological $60 resistance.
Bulls may hold in extended consolidation as daily stochastic is overbought and bullish momentum is fading, while weekly cloud base caps (Hanging Man pattern is forming on weekly chart).
Consolidation should be ideally contained by broken 200DMA ($57.53) which guards daily cloud top ($57.02), violation of which would generate initial reversal signal.
Res: 58.46; 58.61; 59.22; 60.00
Sup: 58.01; 57.53; 57.02; 56.66