Recovery faces headwinds but improved sentiment encourages for further advance
WTI oil price remains steady and holding near recovery high ($52.52) as bulls pause here, capped for now by falling 20DMA.
Daily studies point to consolidative/corrective action as stochastic is strongly overbought and momentum turns south after touching the centerline.
Broken Fibo 23.6% barrier now marks initial support at $51.82 which should ideally contain, but deeper dips should find ground above rising 10DMA ($51.08) to keep bullish bias.
Near-term sentiment has improved on strong measures that Chinese government takes in order to cushion the coronavirus spreading and expectations that OPEC+ group would opt for increased reduction of output that would tighten supply and stabilize oil market.
Overall picture, however, is bearish and current action seen as corrective and positioning for fresh weakness.
Strong technical barrier lays at $53.31 (Fibo 38.2% of $59.62/$49.41 downleg) and firm break here would sideline bears and allow for stronger correction towards $54.52 (daily Kijun-sen / 50% retracement).
Res: 52.52; 53.00; 53.31; 54.36
Sup: 51.82; 51.08; 50.20; 50.00