WTI oil accelerated above $59 barrier on Monday and posted new 2019 high at $59.14, maintaining strong bullish sentiment and signaling continuation of larger uptrend from $42.36 (24 Dec low) after two-day pause, marked by double-Doji on Thu/Fri. Fresh boost to oil prices came from promise of world top exporters, led by Saudi Arabi and Russia, to increase compliance with their production cut agreement, which aims to stabilize global oil market. So-called OPEC+ group committed to reduce production by 1.2 million bpd, in attempts to reduce oversupply and further tighten oil markets. Last week’s strong advance (4.2%) and weekly close above previous high at $57.85, dented $59.00 round-figure resistance and opened way for test of targets at $59.62/$60.00 (50% retracement of $76.88/$42.36 / psychological), violation of which would unmask 200SMA ($61.85). Bullish setup of daily MA’s supports the action, but sideways-moving momentum and slow stochastic, with the latter being strongly overbought, warn that bulls may face strong headwinds from $59.62/$60.00 barriers and the price may ease on failure to break higher in initial attempt. Rising 10SMA ($57.29) is expected to contain corrective dips and keep bulls intact.
Res: 59.14; 59.62; 60.00; 61.27
Sup: 58.93; 58.27; 57.85; 57.29