WTI Outlook – Bulls Hit New 2019 High And Pressure Key Technical Barriers

Technical analysis of Forex market

WTI oil price hit new 2019 high at $63.51 on Monday (also highest since early Nov 2018), in extension of last Friday’s strong bullish acceleration and previous week’s 5.2% rally.

OPEC+ group’s production cut and US sanctions against Iran and Venezuela maintain strong bullish sentiment, also boosted by hopes on US/China trade deal that resulted in WTI’s 38% rally year-to-date.

Bulls generated positive signal on Friday’s close above 55WMA ($62.82) and pressure key barriers at $63.69/87 (Fibo 61.8% of $76.88/$42.36 / weekly cloud base), violation of which would generate fresh bullish signal.

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Weekly cloud is narrowing and will twist next months, being magnetic for further advance.

Strong bullish momentum on daily chart is accompanied by formation of 10/200 golden cross that underpins the action, but strongly overbought daily / weekly slow stochastic warns of price adjustment in the near-term, though without clearer signals yet.

Corrective action needs to hold above broken 200SMA ($61.36) to keep bulls in play, with sustained break above $63.69 Fibo barrier to expose $68.73 (Fibo 76.4% and psychological $70.00 barrier.

Res: 63.69, 63.87, 64.43, 65.00
Sup: 63.23, 62.96, 61.81, 61.36

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