Bulls remain in play but unable to clearly break above $55.55 pivot
WTI oil holds near new 2019 high, maintaining positive tone despite the double rejection at strong Fibo barrier at $55.55 (38.2% of $76.88/$42.36 fall).
Hopes for further tightening in global oil market keep oil prices supported, with US sanctions to Venezuela and OPEC-led production cut, contributing to positive outlook.
Failures to clearly break above $55.55 pivot, due to lack of bullish momentum and overbought condition of daily slow stochastic, so far showed minimum impact on larger bulls, as the price remains underpinned by rising 10/20SMA’s ($53.76 & $53.12 respectively) which mark lower pivots and only break here would sideline bulls.
Strong signal of bullish continuation towards daily cloud top ($56.17) and falling 100SMA ($58.63) in extension, could be expected on sustained break above $55.55 Fibo barrier, reinforced by 20-d upper Bollinger band.
Release of US API crude stocks report later today and EIA crude inventories on Wednesday, would provide fresh signals.
Res: 55.55; 55.73; 56.17; 57.43
Sup: 54.37; 53.76; 53.12; 51.83