Oil price regained traction but needs more signals for further recovery
WTI oil regained traction and rose above $28 mark in European trading on Monday, following gap-lower opening in Asia.
Oil started week at $26.07 after closing on Friday at $28.73, as traders feared further deterioration of the conditions after Saudi Arabia and Russia delayed a key meeting in which they are expected to discuss production cut that could help reduce global oversupply.
Oil prices skyrocketed from critical $20 support last week after US President Trump announced that the deal between two biggest oil exporters is near.
The sentiment improved on Monday after Kremlin said Russia is ready to cooperate with other leading oil exporting countries in attempts to stabilize global oil market.
The OPEC+ meeting was postponed until Thursday due to technical reasons and traders will await the outcome which could further boost oil prices on positive result.
Fresh advance needs to cover today’s gap to generate bullish signal for attack at psychological $30 barrier, violation of which would expose pivotal Fibo barrier at $32.76 (38.2% of $54.62/$1924 descend). Flat momentum at the centerline and neutral RSI, accompanied with overbought stochastic on daily chart warn that bulls currently lack strength for more significant action and will await signals from fundamentals.
Solid support lays at $25.97 (20DMA) and near-term bias is expected to stay with bulls while this support holds.
Res: 28.21; 28.46; 29.11; 30.00
Sup: 26.72; 25.97; 25.29; 24.17