WTI OIL Outlook: Oil Price On Track For Strong Bullish Weekly Close Following Rally On Unexpected Fall In US Crude Stocks

Technical analysis of Forex market

WTI oil maintains firm tone and consolidating under new one-month high at $56.49, posted on Thursday after three-day rally, which resulted in 4.7% rise. Oil prices were boosted by surprise decline in US oil inventories, as well as optimism about OPEC+ action in supporting oil prices by reducing output. WTI contract is on track for strong bullish weekly close (up around 4.5% for the week) which also supports positive outlook.

Repeated close above $55.57/77 pivots (Fibo 38.2% of $63.12/$50.91/100DMA) generated fresh bullish signal for further advance.

Overall near-term sentiment remains positive, with daily studies maintaining strong bullish momentum and supporting scenario. Friday’s close above 100DMA would confirm positive stance and keep the way towards next targets at $56.80 (daily cloud base) and $57.23 (200DMA) open. Broken pivots at $55.77/57 and converging 55/30/5 DMA’s at $55.34/18 zone, mark solid supports which are expected to hold and maintain bullish bias.

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Res: 56.49, 56.80, 57.02, 57.23
Sup: 55.77, 55.57, 55.18, 54.36