WTI oil price holds within tight range under new 2019 high posted after strong 5-day advance, showing hesitation on approach to strong barrier at $56.92 (falling 100SMA).
Bulls are running out of steam as daily slow stochastic is turning south in deep overbought territory and momentum moved lower and is creating bear-cross.
Strong rally from $51.23 trough is likely taking a breather and would be positioning for fresh advance through 100SMA pivot.
The sentiment remains positive on OPEC production cut and sanctions on Iran and Venezuela, but traders look for more news on US/China trade talks, as fresh optimism on comments about possible deal, boosted oil price but needs more evidence.
Focus turns towards US crude inventories reports, API report on Wednesday and EIA report due on Thursday ( delayed one day due to US holiday) for fresh signals.
Former high at $55.73 (4 Feb) and broken Fibo barrier at $55.55, reinforced by rising 5SMA, mark solid support zone which should ideally contain dips, however, deeper pullback towards pivots at $54.25/$53.95 (converged rising 10&20SMA’s) cannot be ruled out before fresh attempts higher.
Only close below these supports would sideline bulls for stronger correction.
Res: 56.71, 56.92, 57.43, 58.14
Sup: 56.02, 55.55, 54.48, 54.25
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