WTI OIL Outlook: WTI oil consolidates under new 2019 high, just ahead of psychological $60 barrier
WTI oil consolidates under new 2019 high at $59.84, posted in extension through Fibo barrier at $59.62 (50% of $76.88/$42.36) on Tuesday.
Strong bullish sentiment in oil market was additionally boosted by promises from top oil producers, led by Russia and Saudi Arabia to comply with agreement for reduced production and increase of the reduction, as the market is still oversupplied.
The OPEC+ group aims to further tighten oil markets and push the price of WTI contract towards targeted level of $80 per barrel. Bulls need close above cracked Fibo barrier at $59.62 to generate fresh bullish signal, for attack at psychological $60 barrier and extension towards 200SMA ($61.82).
Caution on overbought daily slow stochastic and weaker momentum that could result in consolidative/corrective action ahead of fresh push higher.
Rising 5SMA offers initial support at $58.77, with dips expected to find ground above ascending 10SMA ($57.62) to keep bulls intact.
Res: 59.62; 59.84; 60.00; 61.82
Sup: 59.23; 58.77; 58.04; 57.62
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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
