Doji reversal pattern is forming on weekly chart and could be a signal for stronger correction
WTI oil extended recovery on Friday, boosted by fresh optimism over US/China trade talks and stronger than expected China’s Services PMI (Dec 53.9 vs 52.9 f/c).
Fresh bullish acceleration broke above falling 20SMA ($48.18) with Friday’s close above needed to confirm bullish signal.
The sentiment also improved on unexpected draw of US crude stocks (API report on Thursday showed draw of 4.5 mln bls vs last week’s 6.9 mln bls build), with expectations on another draw from EIA report (due later today with 3 mln bls draw forecasted) to add to positive outlook.
Bulls eye pivotal barriers at $49.89/$50.00 (Fibo 61.8% of $54.54/$42.36), violation of which could spark acceleration towards $52.25) converged 10/200WMA’s.
Doji reversal pattern is forming on daily chart and signaling stronger correction.
Res: 49.41; 50.00; 50.51; 51.67
Sup: 48.18; 46.63; 45.88; 44.34