Limited correction keeps bullish sentiment remains in play for fresh attempts higher
WTI oil price rose on Tuesday, as uncertainty over Libyan exports partially offset negative impact from OPEC decision to increase output and fears of escalation of trade conflict between the US and other world major economies.
Oil price dipped on Monday after being repeatedly capped by top of daily cloud, on profit-taking after Friday’s surge, but pullback was contained by 55SMA.
Positive sentiment exists on concerns about trade war and supply shortage from Libya, supported by bullish techs.
Also, Friday’s long bullish daily candle continues to underpin, keeping near-term focus at the upside, while 55SMA holds.
Bulls need sustained break above key barrier at $69.33 (Fibo 61.8% of $72.89/$63.58 fall) to generate bullish signal for attack at psychological $70 barrier and daily cloud top at $70.18, break of which is needed to confirm bullish continuation.
Conversely, increased downside risk could be expected on close below 55SMA ($68.09), with break below $67.15 (Fibo 61.8% of $63.58/$69.36 upleg) needed to confirm reversal.
Res: 68.54; 69.00; 69.33; 70.00
Sup: 68.09; 67.77; 67.15; 66.56