WTI oil hits three-week high on improved sentiment
The WTI oil price rose above $80 per barrel and hit the highest level in three weeks on Tuesday, as the latest easing of Covid restriction on China improved the outlook for demand, while cuts to US energy production caused by winter storms added to supply concerns.
Daily studies show strong bullish momentum and MA’s (10/20/30) in bullish setup that underpins the action.
Close above pivotal barriers at $80.00/$80.20 (psychological / Fibo 76.4% of $83.32/$70.09 bear-leg) is needed to confirm bullish stance for extension towards $82.05 (falling 55DMA) and $83.32 (Dec peak and the lower top of larger $93.72/$70.09 downtrend).
Broken Fibo 61.8% barrier at $78.27 (reinforced by rising 5DMA) should contain dips to keep larger bulls off $70.09 low (Dec 9 low) in play.
Res: 81.02; 82.05; 82.70; 83.32
Sup: 80.00; 79.30; 78.27; 77.86