WTI oil eases on Tuesday after four consecutive failures to close above falling 55DMA and Monday’s rejection at $60.27 (five-week high), followed by close below cracked psychological $60 barrier. Strong bullish momentum still exists, but bulls show signs of stall on four-day congestion and repeated upside rejections. Other studies are mixed and lack clearer direction signal, with fundamentals taking control. Fresh weakness is driven by persisting concerns about global demand that offsets positive signals from ceasefire in US/China trade conflict and agreement between main oil producers, including OPEC and non-OPEC members to extend supply cut until March 2020, in attempts to stabilize oil market and push price higher, as well as falling US crude stocks. Fresh easing is probing below broken 200DMA ($58.48) and approaching pivotal supports at $57.98/75 (rising 10DMA / congestion floor), break of which would generate initial reversal signal and risk deeper pullback from new high at $60.27. Loss of $56.75 handle would risk extension towards next pivot and double-Fibo support at $56.71 (Fibo 38.2% of $50.96/$60.27 upleg / broken Fibo 38.2% of $66.58/$50.59 fall). Extended consolidation with bullish bias in play can be expected while the price holds above 10DMA, but eventual close above $60 barrier and extension above $60.47 (Fibo 61.8% of $66.58/$50.59) is needed to signal bullish continuation.
Res: 59.42; 60.00; 60.27; 60.47
Sup: 58.23; 57.98; 57.75; 56.71
