WTI oil regained strength and bounced above $69 on Tuesday, after attempts to extend corrective pullback from new high at $69.54 (posted on 19 Apr) was strongly rejected on Monday.
Rising 10SMA contained dip and continues to underpin fresh advance (currently at $67.71).
Firm bullish setup of daily techs remained intact and fresh attempts higher turn focus towards initial target at $70.00.
Oil bulls regained traction on renewed geopolitical tensions in the Middle East and concerns about possible supply disruptions in key oil producing countries, offsetting negative impact from increasing US oil production.
Focus turns towards US supply data, which would provide more details about demand in world’s largest oil consumer country.
API report is due late today and markets will be closely watching the outcome after previous week’s stronger than expected draw in oil inventories.
Res: 69.54, 70.00, 71.86, 73.10
Sup: 68.75, 67.68, 67.12, 66.64