WTI oil price hit new 2019 high at $63.51 on Monday (also highest since early Nov 2018), in extension of last Friday’s strong bullish acceleration and previous week’s 5.2% rally.
OPEC+ group’s production cut and US sanctions against Iran and Venezuela maintain strong bullish sentiment, also boosted by hopes on US/China trade deal that resulted in WTI’s 38% rally year-to-date.
Bulls generated positive signal on Friday’s close above 55WMA ($62.82) and pressure key barriers at $63.69/87 (Fibo 61.8% of $76.88/$42.36 / weekly cloud base), violation of which would generate fresh bullish signal.
Weekly cloud is narrowing and will twist next months, being magnetic for further advance.
Strong bullish momentum on daily chart is accompanied by formation of 10/200 golden cross that underpins the action, but strongly overbought daily / weekly slow stochastic warns of price adjustment in the near-term, though without clearer signals yet.
Corrective action needs to hold above broken 200SMA ($61.36) to keep bulls in play, with sustained break above $63.69 Fibo barrier to expose $68.73 (Fibo 76.4% and psychological $70.00 barrier.
Res: 63.69, 63.87, 64.43, 65.00
Sup: 63.23, 62.96, 61.81, 61.36
