WTI oil holds bullish bias on Tuesday, following strong fall last Friday and recovery rejection on Monday.
Restart of some wells of Libya’s biggest oilfield, initially pressured oil price, but the downside remains supported for now, despite weakening daily indicators (momentum / RSI).
Near-term action remains within $55.01/$57.85 range and break of either side would generate clearer direction signal.
Weekly studies suggest that recovery phase from $42.36 low may take a breather after repeated failure under 100WMA, as bearish divergence on weekly stochastic, which is also emerging from overbought territory, suggests.
Markets turn focus towards US crude stocks reports (API is due later today and EIA report on Wednesday), as forecasts signal build in oil inventories in the week to 1 Mar that could put oil prices under fresh pressure.
Sustained break below pivots at $55.55/01 would open way for stronger corrective action and expose supports at $54.54 (daily Kijun-sen) and $53.76 (Fibo 61.8% of $51.23/$57.85 upleg).
Res: 56.98, 57.40, 57.85, 58.45
Sup: 56.08, 55.55, 55.01, 54.82