WTI rises above $70 for the first time in five weeks
The WTI extends strong advance into the second consecutive day and rose above psychological $70 barrier the first time since Aug 3, generating initial signal that two-week congestion under this level is over.
Fresh bulls hit five-week high, confirming a higher base at $67.60 and signaling continuation of recovery rally from $67.60 (Aug 20/23 lows).
Close above $70 pivot (reinforced by 55DMA) would boost bullish signals and open way for surge through thickening daily cloud (spanned between $70.32 and $70.98) and test of next key obstacle at $71.17 (Fibo 61.8% of $76.95/$61.79).
Oil received fresh boost from shut output in the US, following damage from hurricane and expectations for higher demand, but most of impacted refineries managed to restart production faster than expected.
Near-term bias is expected to remain with bulls while the price action stays above $70 level, while close below this level would signal another false break and weaken the structure.
Converged 10/100DMA’s ($69.01) mark pivotal support, loss of which would shift near-term focus lower.
Res: 70.98; 71.16; 71.92; 73.37
Sup: 70.00; 69.37; 69.01; 67.90