WTI OIL – several factors warn of pullback

WTI oil price firmed above $57.00 on Friday, extending recovery from Wednesday’s low at $56.40, but still holding well below multi-month high at $57.90.
Overall picture remains bullish and supported by strong signs of oil market tightening on strong demand and expectations for extension of current production cut by top oil producers.
On the other side, strong uptrend which commenced in June, shows signs of fatigue. Overextended daily studies with slow stochastic already reversed from overbought territory warn of correction.
Diamond top pattern that is forming on daily chart reinforces the idea, with break below pattern’s support line (56.91) to generate initial bearish signal, which would be boosted by loss of $56.40 low and next negative signal would be generated by extension below rising daily Tenkan-sen ($55.89).
Falling weekly 200SMA (currently at $58.85) also weighs and may prompt correction.
Conversely, acceleration through recent peak at $57.90 and weekly 200SMA ($58.85) would signal fresh bullish extension above psychological $60.00 barrier.

Res: 57.51; 57.90; 58.85; 60.00
Sup: 56.91; 56.40; 55.89; 54.53