WTI OIL posts new 2 ½ year high but risk of stall persists
WTI oil remains well supported and posted new high at $62.53 on Tuesday (the highest since mid-May 2015).
Oil price spiked higher after a narrow three-day consolidation, generating signal of bullish continuation
Overall bullish sentiment remains supported by production cut from major world oil producers as well as reduced US drilling activity.
Fresh strength pressures key med-term barrier at $62.71 (13 May 2015 high) break of which would open way towards next target at $66.72 (50% retracement of larger $107.40/$26.04 fall).
However, traders remain cautious as overbought daily studies continue to warn that bulls may stall and spark corrective action.
Initial bearish signal could be expected on break and close below rising 10SMA ($60.89) which would risk pullback towards psychological $60.00 support and rising 20SMA ($59.25) in extension.
Res: 62.19; 62.53; 62.71; 63.00
Sup: 61.32; 61.08; 60.89; 60.00