WTI price regains traction on rising tensions in the Middle East
WTI oil price jumped to $62 zone, following attack at Saudi oil facilities on Tuesday, the second incident in three days, after Saudi tankers were sabotaged on Sunday.
Rising tensions in the region keep oil price supported, but traders also focus the situation over US/China trade conflict which escalated on Monday and renewed talks between two countries are near collapse.
Monday’s bearish daily candle with long upper shadow, left after upside rejection at $63.30 (capped by converged 20/30SMA’s) and subsequent fall weighs, as daily studies are in bearish setup.
Falling 10SMA ($61.86) that tracks the action in past two weeks, caps upside attempts and maintains pressure for eventual attack at 200SMA / daily cloud top ($60.46/41) and $60.03 (6 May low), violation of which would generate strong bearish signal.
Ability to hold above rising daily cloud would ease downside risk, but break above 10SMA would generate initial bullish signal which requires confirmation on sustained break above $63.16/30 (diverging 20/30SMA’s, also 50% retracement of $66.58/$60.03).
Res: 61.86; 62.53; 63.30; 64.08
Sup: 60.93; 60.46; 60.41; 60.03