WTI OIL – extended consolidation under new high; o/b conditions continue to warn
WTI oil is consolidating under new high at $64.75 (the highest since late 2014, posted last week) on Monday and holding strong bullish sentiment.
Ongoing efforts from major world oil producers to reduce the output and reduce global oversupply are giving good results and keep the oil price supported.
WTI contract has completed four bullish weeks, with signs of further advance, however, overbought conditions on daily / weekly chart continue to warn of corrective action.
No firmer bearish signal being generated for now which keeps the price within narrow consolidation.
Friday’s low at $63.05 marks initial support, followed by more significant rising 10SMA ($62.66) violation of which would generate stronger bearish signal.
Today’s trading could see lower volumes as the US will be shut for market holiday.
Res: 64.58; 64.75; 65.00; 65.88
Sup: 64.08; 63.91; 63.68; 63.05