WTI Oil Outlook: Formation of Golden Cross May Underpin for Renewed Attack at Key $43.05 Barrier

Technical analysis of Forex market

Monday’s action was so far without clear direction, as WTI price initially rose, dragged by advance of riskier assets, but persisting concerns about global demand on the second wave of virus and slower than economic recovery, continue to weigh and limit the upside.

Near-term bias remains with bulls following double strong rejections at 200DMA, with attempts to form 20/200DMA golden-cross, expected to underpin the action.

However, lack of momentum may delay renewed attack at key obstacle at $43.05 (Fibo 61.8% of $65.63/6.52) after recent multiple rejections here.

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Firm break here would generate strong bullish signal for continuation of recovery phase from $6.52 low.

Res: 42.86; 43.05; 43.26; 43.49
Sup: 42.20; 41.91; 41.44; 41.04