Fresh strength sidelines risk of pullback
WTI oil price continues to trend higher on Friday after bulls took a breather previous day, when the action was shaped in Hanging Man but negative impact was offset by fresh strength.
No significant results from US/China trade talks provided fresh support to oil prices, as concerns about lower demand on escalation of trade tensions faded.
Fresh bulls are supported by strengthening momentum and daily MA’s (10;20;30) now in bullish setup, while slow stochastic continues to head north, deep in overbought territory, giving so far no signs of reversal.
Strong barriers at $68.60/77 (Fibo 38.2% of $75.34/$64.43 / converged 100/55SMA’s) is under pressure, with sustained break higher to generate fresh bullish signal for extension towards psychological $70 barrier and $70.42 (30 July lower top).
On the downside, 30SMA marks initial support at $67.78, while 20SMA which contained Thursday’s consolidation, turned sideways (currently at $67.42) and is expected keep the downside protected.
Res: 68.60; 68.77; 69.35; 69.89
Sup: 67.78; 67.42; 67.00; 66.53