Oil price is underpinned by fundamentals but lacks support from techs
WTI oil maintain positive tone and holds in green for the fourth straight day, supported by fresh optimism on remarks from Saudi Arabia’s new energy minister Prince Abdulaziz, son of Saudi King, who showed strong commitment for further strengthening of production cut agreement between OPEC+ group members.
Fresh advance probed again above important Fibo barrier at $56.98 (Fibo 61.8% of $60.96/$50.53), after several attempts higher failed to clearly break higher and were capped by falling 100DMA.
Positive fundamentals are not followed by techs as daily momentum, RSI and Stochastic are flat, but the price action is expected to maintain bullish bias while holding above broken 200DMA ($56.23).
Close above Fibo 61.8% barrier and 100DMA is needed to signal bullish continuation, while repeated failure may result in extended consolidation.
Expect bearish signal on break and close below 200DMA.
Res: 56.98; 57.48; 57.97; 58.50
Sup: 56.65; 56.38; 56.23; 55.88