WTI oil returns above $52 handle after dipping to $51.66 in Asia on profit-taking. Monday’s high at $52.35 is eyed for retest with final stretch towards key $52.84 barrier (28 Sep high), seen as likely near-term scenario.
Oil price remains supported by positive fundamentals which were boosted by recent clashes in Iraq, threatening of supply disruption in the region.
Also, positive technical studies are supplementing bullish sentiment in the market and favoring further rise of oil prices.
Firm break above $52.84 would signal extension the bull-leg from $49.09 (part of broader uptrend from 2017 low at $42.04) towards next target at $53.74 (12 Apr high).
Overbought conditions of daily slow stochastic have so far been ignored, but some corrective easing could be anticipated in the near-term.
Rising 20SMA ($51.00) should contain stronger dips.
Res: 52.35, 52.84, 53.18, 53.74
Sup: 51.66, 51.40, 51.00, 50.75