WTI oil holds in red at the beginning of the week and pressures pivotal supports at $67.10 base, where recent downside attempts were repeatedly rejected. Oil price came under fresh pressure after report released late Friday showed US drillers added five oil rigs previous week, increasing risk of sidelining overall bullish environment on firm break below near-term consolidation range floor. Investors are focusing on decision of the US administration regarding re-imposing sanctions against Iran, which could further shake global oil markets. From the technical point of view, firm bullish structure on daily chart has been dented, as today’s extension lower broke below 10SMA, which contained dips during the past week and marking significant support (currently at $67.97). Eventual close below 10SMA would be bearish signal which needs confirmation on close below $67.10 base, to open way for further easing and test of next pivot at $66.58 (reinforced by rising 20SMA) and generate reversal signal on break. Adding to weakening bulls is south-heading 14-d momentum which moved lower from the highest since mid-January and falling daily RSI after forming bearish divergence on daily chart. Overall picture remains positive and consolidative/corrective action is likely to precede fresh push higher, as bulls eye target at $70 (psychological barrier) which was approached on recent rally that peaked at $69.54.

Res: 67.71, 68.58, 68.76, 69.00
Sup: 67.10, 66.58, 66.43, 65.75

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