WTI oil price moves lower on Friday after Thursday’s action ended in long-tailed Doji, signaling hesitation ahead of $51.00 barrier which was dented on Wednesday.
Today’s easing was so far mild and suggesting the price may hold in extended consolidation while initial support at $50.00 (Thursday’s low and strong downside rejection) holds.
Overall bullish structure was reinforced by formation of 10/200 SMA golden-cross, which underpins the action.
Sustained break above $50.83/$51.09 (cracked FE 100$ of the wave C from $46.99 trough/Wednesday’s fresh four-month high) would signal bullish continuation and extension of the third wave (of five-wave sequence from $45.57) towards its FE 123.6% at $51.74.
Caution on break below $50.00 (as slow stochastic is reversing from o/b zone on daily chart and generating bearish signal) which may spark deeper pullback towards next pivotal support at $49.55 (200SMA).
Res: 50.83, 51.09, 51.55, 51.74
Sup: 50.44, 50.00, 49.74, 49.55
