WTI OIL – reversal pattern is forming on daily chart
WTI oil stands at the back foot on Friday and eases from fresh high at $62.19 (the highest levels since mid-May 2015).
Bearish signal was generated on Thursday’s close in Doji and subsequent weakness on Friday, completing Evening Doji Star reversal pattern.
Also, overbought daily studies add on negative signal developing on daily chart and risking stronger pullback, as soaring US production threats to undermine supportive factors from OPEC-led production cut and recent unrests in Iran.
However, the move is so far seen as technical correction ahead of fresh attempts higher, as overall structure remains firmly bullish and favors dip-buying scenario.
Rising 10SMA marks solid support at $60.15 which should ideally contain corrective dips.
Res: 62.02; 62.19; 62.71; 63.00
Sup: 61.14; 60.75; 60.15; 60.00