WTI – Friday’s bullish outside day was bullish signal but recovery may consolidate further before resuming
WTI oil eased after attempts to extend Friday’s strong rally ran out of steam at $62.31 on Monday.
Bullish signal was generated on Friday’s strong rally which formed bullish outside day on the biggest one-day rally since 14 Feb.
Daily techs are gaining fresh momentum on probes through a batch of MA’s, as recent gains retraced over 61.8% of $63.26/$59.94 bear-leg.
Close above here is needed for fresh bullish signal for extension of recovery from $60.00 zone, where last week’s fall was rejected.
Cut in US oil rigs which came for the first time in nearly two months also helped oil price to rise, however, fears of increase of US oil output keeps gains limited for now.
Near-term price action is holding in thick daily cloud and broken cloud base ($61.23) marks strong support which is expected to hold and maintain positive near-term structure.
Res: 62.31; 62.56; 62.77; 63.26
Sup: 61.55; 61.23; 60.72; 60.13