WTI continues to trade around $40 handle on Thursday, extending narrow-range movements into third straight day and on track to leave third consecutive daily Doji candle.
Conflicting signals keep oil price in directionless mode as sharp drop in US crude stockpiles and boosted risk mode from US NFP beat underpin the action but rise in new virus cases in the US keeps fears of demand recovery stall and limits the upside.
Daily techs in mixed mode (MA’s in bullish setup, flat momentum, stochastic approaching overbought zone border) add to directionless near-term mode.
Initial supports lay at $39.42 (10DMA) and $38.66 (20DMA), with bias expected to remain with bulls while the action stays above these levels.
On the other side, psychological $40 level marks strong barrier, reinforced by falling 30WMA, with the action of past three weeks being unable to close above this level, despite upticks to $41.61, keeping in play risk of stall following repeated failures here.
Res: 40.60; 51.00; 51.61; 42.00
Sup: 39.44; 38.66; 38.00; 37.49
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