After initial dive to 33.50 yesterday, WTI oil price staged a strong rebound and it’s now back above 36 handle. The rebound was driven by news that Russia discussed a three-month extension of OPEC+ oil production cuts, until March 2021.
Technically, WTI drew support from 34.10/36 zone as we have expected. The zone covers 100% projection of 43.50 to 35.98 from 41.62 at 34.10 and 34.36 structural support. Break of 36.72 resistance indicates short term bottoming, on bullish convergence condition in 4 hour MACD. Immediate bearishness is now neutralized. There is little prospect of strong rally as long as 55 day EMA (now at 39.27) holds. Though, even in case of another fall, 33.50 should provide the floor.
