Oil price stands at the front foot on on latest comments from Saudi Oil Minister
WTI oil price extended higher on Monday, bouncing from dangerous territory after spiking to $54.51 on Friday after weak Chinese data.
Downbeat US NFP data which pushed dollar lower, helped oil’s recovery, with the latest news that OPEC and other main oil producers will not change its production cut policy and signals that Saudi Arabia may further reduce output as early as April, added to positive signals.
Oil price managed to close above rising 20SMA (currently at $56.06) on Friday and holding above it today, keeping positive tone.
Fresh bullish momentum on daily chart also helps, along with other indicators in bullish alignment.
Repeated close above 20SMA is needed to keep near-term focus shifted higher for renewed attempts towards key $57.79/85 highs, violation of which would signal bullish continuation.
Conversely, close below 20SMA would keep the downside vulnerable for test of pivotal support provided by 30 and 100 SMA’s ($55.27 / $54.60 respectively) cracked on Friday’s spike lower.
Res: 56.77; 56.97; 57.17; 57.85
Sup: 56.06; 55.55; 55.27; 54.60