WTI OIL price bounces after rising 20SMA contained correction
WTI oil price moved higher on Friday and forming reversal pattern on daily chart. Thursday’s action ended in long-legged Doji and signaled stall of pullback from $59.02 peak, which was contained by rising 20SMA.
Fresh recovery needs firm break above $58.00 to confirm reversal and higher base at $56.80 zone.
Oil prices remained steady after OPEC and other major oil producers agreed to extend output cut program until the end of 2018, in widely expected decision.
Bullish close in November comes as extension of previous two months rally and signals further rally of oil prices.
However, WTI contract is on track for bearish weekly close which may delay bulls for extended consolidation under high at $59.02.
Bullish daily techs remain supportive for further retracement of $59.02/$56.75 pullback which may show hesitation on approach to $59.02 target.
Alternative scenario sees increased risk of extension of pullback from $59.02 on close below 20SMA (currently at $57.05).
Res: 58.02; 58.28; 59.02; 60.00
Sup: 57.61; 57.28; 57.05; 56.75