WTI oil bounces strongly on profit-taking; solid China’s data
WTI oil changes direction on Wednesday and bounces after three-day fall that hit 3 ½ week low at $52.82 on Tuesday.
The oil price advanced 2.8% in Asia / Europe on Wednesday, as sentiment improved on data released overnight that showed Chinese services sector expanded at the fastest pace in three months to August.
Extension above pivotal barriers at 55.06/33 (10/20/30DMA’s / Fibo 61.8% of $56.88/$52.82) generated fresh bullish signal for recovery extension and possible test of 200DMA ($56.15) which caps the action for one month.
Fresh bullish momentum on daily chart adds to positive tone, with daily close above $55.33 Fibo barrier, expected to further firm near-term structure, however, persisting concerns over US/China trade conflict, remain as significant factor which could negatively impact the price at any time.
Converged daily Tenkan / Kijun-sen mark solid supports at $54.85/67.
Res: 55.71; 55.92; 56.15; 56.43
Sup: 55.00; 54.85; 54.67; 54.37