WTI oil extends pullback from recovery highs at $50.82, following repeated upside rejection of recovery rally that was capped by daily Kijun-sen line. The price is in red for the second day and fresh extension lower cracked psychological $50.00 support on Tuesday. The move is so far seen as correction on strongly overbought slow stochastic on daily chart, which is attempting to generate stronger bearish signal on reversal. Correction could extend to $49.39 (Fibo 38.2% of $47.07/$50.82 upleg), before fresh attempts higher. Technicals studies are in mixed mode and without clear direction, however, recent break above $50.00 pivot was positive signal for further recovery. Limited dips are required to keep bullish scenario in play for fresh attempts towards next targets at $51.03/20 (50% of $55.01/$47.06/100SMA). Alternatively, increased downside pressure could be expected on loss of $49.39 support, while extension below $48.95 (daily Tenkan-sen) would signal reversal.
Res: 50.33, 50.73, 50.83, 51.03
Sup: 48.87, 49.39, 48.95, 48.50