Oil probes again through key barrier, underpinned by upbeat US GDP data and demand optimism
The WTI oil advances for the second consecutive day and probing again through strong resistance at $81.91, provided by the top of thick daily cloud and 50% retracement of $93.72/$70.09, where recent attacks failed several times to register firm break higher.
The price is standing comfortably above psychological $80 level, now acting as solid support, with fresh advance being underpinned by optimism about Chinese demand recovery, while the latest better than expected US GDP data, additionally brightened the outlook.
Technical picture on daily chart is bullish and contributes to positive fundamentals, though strong bullish momentum has lost traction, adding to warning that bulls continue to face strong headwinds at $81.91 pivot and may again fail to clearly break this barrier.
Another upside rejection would keep the price within the recent range, but biased higher while above $80 level.
On the other hand, weekly close above $81.91 would signal extension of the bull-leg from $72.44 (Jan 5 low) and expose targets at $83.32/$84.69 (Dec 1 high / Fibo 61.8% of 93.72/$70.09 descend).
Traders shift focus towards the next week’s meeting of OPEC+, though the cartel is unlikely to make any change to its current production policy.
Res: 82.70; 83.32; 84.38; 84.69
Sup: 81.04; 80.76; 80.00; 79.43