WTI oil price edged lower on Monday after hitting new marginally higher high ($115.42) on a partial profit taking from over 13% rally in the previous trading session on Thursday.
Traders were cautiously optimistic and awaited more details about potential peace talks between the USA and Iran but remain on high alerts on threats of more negative impact from prolonged supply disruption, in the scenario of failure of peace talks and escalation of the conflict.
Technical picture remains bullish overall on daily and weekly charts, with large bullish weekly candle adding to supportive factors, although overbought conditions warn of further headwinds bulls may face on the way towards initial targets at $120 zone.
Consolidation with limited dips (to be ideally contained at $105/$104 zone) is needed to keep broader bulls intact and mark a healthy correction of the latest upleg ($84.49/$115.42) ahead of fresh push higher.
Caution on dips below psychological $100 support (also 50% retracement of $84.49/$115.42) which may trigger deeper pullback and expose next key support at $97.00 (bull-channel support line).
Res: 113.94; 115.42; 117.08; 120.00.
Sup: 108.93; 106.82; 103.60; 100.00.
 on a partial profit taking from over 13% rally in the previous trading session on Thursday.){kind=link}