WTI oil moved above $38 per barrel after extension of pullback from new 15-week high ($41.61) approached $ 37 level earlier today.
Oil dipped over 8% in three days on renewed fears about global demand and record build of US crude stocks, but found footstep after US jobless claims came below previous week’s figure, although overshot the forecast, and continuing claims fell below 20M that revived optimism and temporarily improved risk sentiment.
Daily techs show prevailing negative tone as momentum is entering negative territory and stochastic is in steep fall, but moving averages are in mixed setup.
Fresh recovery attempt bounced above pivotal 20DMA ($37.87) which was cracked twice but so far without clear break lower.
Repeated close above the indicator could be seen as initial bullish signal, which would require lift and close above $38.80 (Fibo 38.2% of $41.61/ $37.06 pullback) to signal reversal and expose next pivotal barrier at $40.00. Conversely, close below 20DMA would weaken near-term structure and risk deeper pullback towards $36.19 (30DMA) and $34.33 (15 June trough).
Res: 38.80; 39.32; 39.87; 40.00
Sup: 37.87; 37.06; 36.19; 35.07