US oil price fell on Tuesday recovery rally last week’s low at $48.16 failed to clearly break above psychological $50.00 barrier. Oil hit fresh recovery high at $50.27 on Monday, but failed to close above $50.00 pivot, also daily Tenkan-sen which caps upside attempts for the third straight day.
Close in red today would generate reversal signal, as price action ended in Doji on Monday, signaling strong indecision at $50.00 barrier.
Near-term studies are neutral/bearish while dailies show mixed setup.
Stronger direction signals could be expected on sustained break above $50.00 which would open way for upside extension towards 100SMA pivot at $50.95 of close below 200/55 SMA’s at $49.66/$49.51 respectively, for fresh bearish extension towards next strong support at $48.66, provided by rising 20SMA.
Concerns about global oversupply continue to weigh on oil price, threatening to offset efforts from OPEC to support the price by extending output cut for additional nine months.
Res: 50.00, 50.27, 50.55, 50.95
Sup: 49.66, 49.51, 48.83, 48.66
