WTI OIL – bears are pausing on improved sentiment, but outlook remains negative
WTI oil ticked higher on Friday, taking a breather after strong three-day fall from $63.26 lower top resulted in brief probe below psychological $60 support on Thursday.
Improved market sentiment on news of US – NK talks lifted oil price on Friday, but risk of further weakness remains as concerns about production and rising US crude stocks keep oil price pressured.
Thursday’s fall generated bearish signal on close below $60.49 pivot (Fibo 61.8% of $58.19/$64.22 rally), which now acts as initial resistance and caps recovery attempts for now.
Stronger upticks through $60.49 barrier are not ruled out as slow stochastic is at the border of oversold zone, with base of thick daily cloud at $61.23, expected to cap and keep bears intact for fresh downside.
Res: 60.49; 60.86; 61.23; 61.57
Sup: 60.12; 59.94; 59.55; 59.10