WTI Oil Outlook: Oil Consolidates Under New 2019 High, Bullish Bias Remains Intact Above 100SMA

Technical analysis of Forex market

WTI oil regained traction and probes back above $57 handle on Friday, following bearish close on Thursday (the first close in red after six straight bullish days), when the price came under pressure from stronger than expected build in crude stocks (EIA report 3.67 mln bls vs 3.0 mln bls f/c).

Dip from new 2019 high at $57.58 was contained by broken 100SMA, keeping near-term bullish bias.

However, bulls may stay on hold, as negative signal is developing on daily / weekly stochastic which is reversing from overbought zone.

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Break and close below 100SMA is needed to signal pullback and open way for further corrective action.

Broken Fibo barrier at $55.55, reinforced by rising 10SMA marks solid support which is expected to contain extended dips and guard pivots at $54.56/53.96 (converging rising 20/30SMA’s).

Ability to hold above 100SMA would signal extended consolidation and keep immediate focus at the upside.

The sentiment remains positive on production cut from the biggest world oil exporters, as well as prevailing optimism from US/China trade talks.

Res: 57.58, 58.14, 59.62, 60.00
Sup: 56.75, 56.37, 55.73, 55.55

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