WTI oil edges higher on Tuesday as traders booked some profit’s after week-long pullback from $55.73 high started showing initial signs of stall. Monday’s hammer candle suggests that $55.73/$51.23 corrective dip might be over after bears repeatedly failed to clearly break below 200WMA ($52.33). Daily momentum emerged into positive territory and stochastic turned north from sideways mode (just above oversold border line) adding to positive signals. Today’s bullish close may generate initial bullish signal, but extension and close above converged 20/10SMA’s ($53.34/66 respectively) is needed t generate reversal signal. Fundamentals remain mixed as OPEC-lead production cut and US sanctions on Iran and Venezuela underpin but fears of global economic growth slowdown, partially offset positive impact. Traders would look for fresh signals from US API crude stocks report, due today, and Wednesday’s EIA US crude inventories report.
Res: 53.34 53.66, 54.28, 55.15
Sup: 52.33, 51.23, 50.94, 50.62