WTI OIL – downside rejection at $61.00 keeps bias with bulls but upside attempts could be limited for now
WTI oil price is regaining traction and moved higher in mid-European session trading on Monday after shallow correction on Friday was contained just above psychological $61.00 support.
Strong downside rejection last Friday sidelined signals of reversal, turning immediate focus to the upside.
Technical studies remain in bullish setup on daily chart, favoring further advance, however, overbought conditions and concerns about rising US production, which offset positive signals from decline in US oil rigs, suggests limited upside action for now.
The price may hold in extended consolidation before firmly breaking barrier at $62.00 per barrel, with extended dips not ruled out.
Rising daily 10SMA continues to underpin and offers solid support (currently at $60.52) which is expected to contain downticks and limit risk of deeper pullback.
Res: 62.02; 62.19; 62.71; 63.00
Sup: 61.37; 61.08; 60.52; 60.17