WTI oil price returned above $71 on Tuesday and probes above Monday’s high at $71.23, posted after strong rally from two-day correction low at $70.25.
Fresh bullish sentiment on escalation of tensions in the Middle East and stronger than required production cut from OPEC, keeps oil prices supported as recovery retraced over 61.8% of $71.86/$70.25 pullback.
Scope exists for retest of recent 3 ½ year high at $71.86, break of which would expose $73.21 (14 Nov 2014 low) and $76.35 (Fibo 61.8% of $107.45/$26.04 fall).
Rising 10SMA continues to track the advance and offer solid support at $70.15.
Res: 71.61, 71.86, 72.00, 72.48
Sup: 70.78, 70.15, 70.00, 69.54
