WTI OIL – break below rising 10SMA is needed to generate stronger reversal signal
WTI oil remains in red on Tuesday with reversal signal developing on daily chart but downside attempts are still limited and holding above rising 10SMA which marks the first pivot at $56.27.
Near-term price action shows no clear direction on mixed fundamentals as prospects for further increase of US production offsets expectations for further tightening in oil market on OPEC-led output cut which is likely to extend.
Overextended daily studies are negative indication with bearish signal developing on attempts of daily RSI to return from overbought territory.
Initial requirement for stronger bearish acceleration is close below 10SMA which would open support at $55.82 (Fibo 23.6% of $49.09/$57.90) and more significant support at $54.53 in extension (Fibo 38.2% / rising 20SMA).
Falling hourly cloud (spanned between $56.82 and $57.02) is expected to cap and maintain bearish near-term bias.
Res: 56.82; 57.02; 57.51; 57.90
Sup: 56.29; 55.82; 54.53; 53.88