WTI oil – larger bears are taking a breather ahead of key $70 support zone

WTI oil price edged higher on Friday as larger bears are taking a breather after this week’s strong fall.

Fresh gains were sparked by new US sanctions on Iran’s crude exports, which partially countered strong pressure on oil price from growing fears about US-China trade war and its consequences on global economy.

Recovery was underpinned by rising thin daily cloud, but upticks were so far limited by broken 100DMA ($71.36).

Firmly bearish technical picture on daily chart contributes potential scenario of limited bounce rather to offer better selling opportunities than to mark a more significant correction.

The WTI contract is on track for the third consecutive strong weekly loss that weighs on near-term outlook.

Weekly close below broken Fibo support at $71.71 (61.8% of $66.98/$79.35 rally) to confirm that bears remain firmly in play for attack at next key supports at $70 zone (psychological / Fibo 76.4%), guarding $68.44 (Dec 20 low) and $66.98 (Dec 6 low).

Above 100DMA, significant barriers lay at $71.93 (55DMA) and $72.53 (falling 10DMA).

Res: 73.16; 73.63; 74.29; 74.52
Sup: 72.01; 71.71; 71.18; 70.00