WTI Oil – limited downside risk while rising daily Kijun-sen holds dips
WTI oil price edged lower on Monday after strong rally on Thu/Fri which peaked at $57.77, retracing over 61.8% of $58.86/$55.81 bear-leg.
Today’s action was so far shaped in Doji candle and holding between daily Kijun-sen ($56.91) and Tenkan-sen ($57.34), which suggests no immediate downside threats while Kijun-sen line holds.
Negative near-term sentiment rose on renewed concerns about rising US oil output, after data on Friday showed that the number of US oil drilling rigs rose to the highest since September.
Overall picture is still bullish and favors further recovery off $55.81 (07 Dec trough). Initial bullish signal is seen on break above daily Tenkan-sen, with close above $57.69 (Fibo 61.8% of $56.86/$55.81) needed to confirm scenario.
Conversely, loss of Kijun-sen support would risk deeper pullback and would expose key near-term support at $55.81.
Res: 57.34; 57.77; 58.14; 58.66
Sup: 56.91; 56.53; 56.06; 55.81