Oil holds bullish tone after Friday’s 5.3% rally
WTI oil price regained traction after a gap-lower opening and subsequent dip on Monday, pressuring last Friday’s three-week high, posted after Friday’s 5.3% rally.
Signals that the Fed may ease its firm hawkish stance in tightening monetary policy in coming meetings, deflated dollar and lifted oil prices, with news that China will stick to its zero-Covid policy (after Friday’s rumors of possible easing) had a limited and short-lived negative impact on oil prices.
Friday’s strong bullish acceleration generated strong bullish signal on close above pivots at $90.69 (Fibo 76.4%) and $91.62 (falling 100DMA).
Bulls eye key near-term barrier at $93.60 (Oct 10 top), break of which would add to reversal signal on completion of failure swing pattern on daily chart and expose next key resistance at $94.36 (Fibo 38.2% of $123.56/$76.25).
Bullish daily studies are supportive, but overbought conditions suggest a pause for consolidation, with dips to be ideally contained by broken $90 level, which guards pivotal support at $89.06 (daily cloud top).
Res: 92.82; 93.60; 94.36; 95.02
Sup: 91.62; 90.69; 90.00; 89.06