Oil prices edged slightly higher today but fails to gather enough upside momentum so far. It’s supported by hopes of a production cut from OPEC+, as response to restore balance after Iran’s nuclear deal. Also, unrest in Libya’s capital at the weekend prompted concerns of disruption of supply from the country.
WTI’s first attempt at 95.91 resistance failed last week, but retreat is so far shallow. Some support is seen from 4 hour 55 EMA, which is a positive sign, and could set the base for another taken on the resistance.
Also, in the background, 86.41 low was already close enough to an important cluster support at 85.92, with 100% projection of 131.82 to 93.47 from 124.12 at 85.77. That is, the conditions are there for WTI to complete the whole corrective pattern from 131.81 high.
Break of 96.59 and sustained trading above 95.91 should confirm near term bullish reversal, and set the stage for 103.84 resistance next.
