US CRUDE OIL hits new over two-year high; correction may precede fresh upside
WTI oil maintains strong bullish tone on Monday and hit new high at $56.56 (the highest since July 2015), in extension of strong rally last Thu/Fri.
Oil prices remains strongly supported by expectations that oil producers will agree to extended existing output cut on cartel’s meeting at the end of November.
Series of arrests of high-profile persons in Saudi Arabia over the weekend also added to support of oil prices.
WTI contract for December delivery is currently riding on the third wave of five-wave cycle from $45.57 which hit its 100% Fibonacci expansion and could travel to $57.99 (FE 123.6%) and $59.04 (FE 138.2%) in extension).
Close above initial pivot at $57.14 (Fibo 38.2% of $107.45/$26.04 descend) is needed to generate strong bullish signal.
Meanwhile, correction on overbought daily studies (RSI / slow stochastic) could be anticipated.
Rising daily Tenkan-sen ($54.07) and 10SMA ($54.09) are expected to ideally contain dips and keep broader bulls intact, as bullish sentiment remains firm.
Res: 56.26; 57.14; 57.99; 59.04
Sup: 55.67; 54.59; 54.07; 53.74