WTI price is inflated by market optimism but remains congested between 200DMA and daily cloud top
WTI oil price stands at the front foot on Friday and accelerated above $57 mark on weaker dollar after US data.
Optimism that the OPEC+ group will maintain its agreement for oil supply cut and fresh hopes for US/China trade deal, keep the oil prices inflated.
Daily chart shows near-term price action congested between 200DMA ($57.44), following several failures to close above cracked barrier and daily cloud top ($56.80), where downticks repeatedly failed to register close below.
Short-term uptrend from $50.91 (3 Oct spike low) remains intact, as near-term action is underpinned by thick daily cloud and rising daily bullish momentum, but bulls need close above 200DMA to generate positive signal for extension towards strong barrier at $58.46 (Fibo 61.8% of $63.12/$50.91 / weekly cloud base).
Caution on eventual close below daily cloud top as this would generate initial bearish signal, however, stronger reversal signal could be expected on break and close below pivots at $55.19/$54.97 (Fibo 38.2% of $50.91/$57.83 / daily cloud base).
Res: 57.21; 57.44; 57.83; 58.46
Sup: 56.80; 56.24; 55.75; 55.57