WTI oil rose further on Tuesday and hit new high of nearly two weeks, in extension of recovery which started from Monday’s gap-higher weekly opening.
The oil was up 2.5% for the day so far and fresh bullish acceleration pressures pivotal barrier at $54.80 (Fibo 61.8% of $58.14/$49.40 bear-leg, reinforced by falling 20SMA).
Sustained break here would signal further recovery, which could stretch towards the base of rising thick weekly cloud ($57.47) and expose falling 30SMA ($58.27) on break.
Monday’s close above 10SMA (which turned sideways) was bullish signal and 10SMA now offers solid support at $52.20.
Improved sentiment on temporarily sidelined concerns about trade war escalation, as well as hopes that world’s leading oil producers will cut output, support oil prices.
OPEC is meeting in two days and is expected to announce production cut of over one million barrels per day, in order to stabilize global oil market, shaken by rising US shale oil production and fears of global oversupply which could lead to significantly lower demand.
Res: 54.80, 55.83, 56.08, 57.43
Sup: 53.02, 52.20, 52.11, 51.77