Bulls are taking a breather on Tuesday after hitting fresh, marginally higher high at $57.67 (the highest since early July 2015).
The price action is holding within narrow range on Tuesday, following strong rally in past three days when oil was up nearly 5.5%.
Strong bullish sentiment on expectations oil producers will extend existing output cut agreement was boosted by weekend’s series of arrests of high-profile officials in Saudi Arabia, OPEC’s most influential member.
Strong rally on Monday managed to close above pivotal barrier at $57.12 (Fibo 38.2% of $107.40/$26.04, 2014/2016 fall), generating strong bullish signal for extension towards psychological $60.00 barrier.
Overextended daily studies warn of correction but so far without firmer signal.
Corrective dips would face strong support from rising 10SMA (currently at $54.71) which tracks the ascend in past one month.
Res: 57.67, 57.99, 59.04, 60.00
Sup: 57.12, 56.29, 55.64, 54.71
