WTI Oil Outlook: Fresh Recovery Offsets Downside Risk But Break Of Key Barrier At $71.17 Needed For Bullish Signal

Technical analysis of Forex market

WTI oil regained traction and managed to cover a part of previous day’s losses, sparked by President Trump’s request to OPEC to lower prices.

Oil bounced from $70 zone where yesterday’s pullback found support, keeping overall bullish bias intact.

However, bulls still face strong headwinds from barriers at $71.20/30 zone ( Fibo 61.8% of $75.34/$64.43 descend) where triple upside rejection was registered in recent sessions, on repeated failure to close above Fibo barrier.

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Sustained break here is needed to signal continuation of recovery phase from $64.43 (16 Aug low) towards next target at $72.77 (Fibo 76.4% of $75.34/$64.43).

Bullish techs were hit by recent conflicting fundamentals that resulted in repeated failures to resume uptrend, but WTI contract is on track for bullish weekly close which adds to positive outlook.

Key supports at $69.50 zone (rising 10SMA / daily cloud top) need to hold and keep bulls in play.

Res: 71.38, 71.64, 72.00, 72.77
Sup: 70.00, 69.50, 69.31, 68.94