WTI oil is set to resume rally after narrow consolidation just under new multi-month high on Friday and on track for the seventh straight week of gains.
Strong bullish sentiment is boosted by vaccine hopes as more countries give green light for vaccination, with strong drop in US crude stocks last week, additionally inflating the oil prices.
Bulls cracked important resistance at $48.46 (100WMA), close above which would generate bullish signal and open way for test of psychological $50 barrier (last time traded in late February).
Technical studies are bullish, with overbought conditions on daily and weekly charts, being so far ignored, but warning of price adjustment in coming sessions.
Monthly cloud twists in February and expected to be magnetic. Dips are expected to provide better opportunities to re-join bullish market, with rising 10 and 20DMA’s ($46.98 and $45.98 respectively) expected to hold and guard pivotal supports at $43.75/05 (former top of 23 Aug/broken Fibo 61.8% of $65.63/$6.52 fall).
Res: 49.00; 49.50; 50.00; 50.68
Sup: 47.89; 46.98; 46.52; 45.98