Downside pressure eases but directionless while between 100/55SMA’s
WTI oil price moved higher on Monday after Friday’s trading ended in Doji with long upper shadow, signaling stabilization and sidelining downside risk.
Oil price rose after weekend’s G20 meeting pointed on rising concerns about global growth risks which would hit demand, as well significant cut in US oil rigs (the biggest since March).
However, near-term action is still directionless and holding within congestion between 100SMA ($67.46) and 55SMA ($69.34), with break of either side required to generate firmer direction signal.
Overall negative daily techs keep the downside at risk, while improving sentiment underpins near-term action.
Bullish scenario on sustained break above converging 55/10SMA’s would neutralize downside risk and expose pivotal barriers at $70.00/20 (psychological / Fibo 38.2% of $75.34/$67.03 bear-leg).
Break here would signal bullish extension towards next breakpoint at $71.44 (20SMA).
Conversely, violation of rising 100SMA ($67.46) and thin daily cloud ($67.34/$67.11) would risk break through $67.02 double-bottom and continuation of downtrend from $75.34 (04 July high).
Res: 68.89; 69.34; 70.00; 70.20
Sup: 67.95; 67.46; 67.02; 66.36