WTI OIL eases after week-long rally; rising cloud continues to underpin
WTI rose eased on Tuesday after hitting new nearly three-week high at $62.63, as overbought slow stochastic on daily chart suggests that four-day recovery from higher base at $58.10 zone may take a breather.
Rising daily cloud which underpinned recovery in past few sessions now marks immediate support (cloud top lies at $61.46) which should ideally contain as oil market remains boosted by efforts from major oil producers to cut global oil production and stabilize oil markets.
OPEC reported 133% compliance with output cut program in January, adding to positive impact on oil prices.
Bulls need break through $62.86 (falling 20SMA) to generate fresh bullish signal for extension of recovery leg from $58.10 base.
Extended dips below cloud top should find footstep at $60.93/72 (Fibo 38.2% of $58.19/$62.63 upleg / 10SMA) to keep bullish structure intact, otherwise, risk of stronger pullback on firm break below 10SMA would sideline near-term bulls and expose psychological $60.00 support.
Bearish extension below $59.42 (daily cloud base) is needed to neutralize bulls and turn near-term focus lower.
Res: 62.35; 62.63; 62.86; 63.36
Sup: 61.67; 61.46; 60.93; 60.72