WTI oil price rises on Monday and recovering last Friday’s 2.5% fall, boosted by renewed optimism on possible deal on US/China trade talks.
Strong rise in US oil production (peaked at 12.1 million bpd) partially offset positive impact from OPEC’s production cut and strong draw in US crude stocks, that kept oil prices limited (repeated upside rejections formed a double-top at $57.79/85).
Near-term price action holds above important supports at $55.55/33 (broken Fibo barrier/100SMA) and maintains bullish bias, but recovery needs clear break above 10SMA ($56.51) to sideline existing downside risk and shift focus towards $57/79/85 tops and $58.35 (100WMA).
Weakening momentum and south-heading stochastic keeps of renewed attack at pivotal supports alive, with the notion being supported by weekly bearish engulfing and weekly stochastics’ bearish divergence. Break of $55.55/00 pivotal support zone could bring fresh bears in play and risk deeper pullback.
Res: 56.51, 57.13, 57.85, 58.45
Sup: 56.35, 55.55, 55.33, 55.00
