WTI oil price edged higher on Tuesday after steep fall in past six days found footstep at 200DMA ($57.75). Oil price came under pressure on signs of de-escalation of US/Iran conflict as unexpected rise of US crude stocks last week that also raised concerns about global oversupply. Positive signals come from expectations that US and China will sign phase 1 of their trade deal and raise expectations that China would increase oil imports from the US. Bears need break below 200DMA to generate fresh bearish signal for continuation and attack at daily cloud (spanned between $57.15 and $55.33), but may take some time for consolidation, as daily stochastic is deeply oversold. Focus turns towards releases of US crude stocks report today (API) and on Wednesday (EIA) which would provide fresh direction signals. Broken pivotal Fibo support at $58.98 (61.8% of $55.00/$65.43) now offers solid resistance which is expected to cap and keep bears intact.
Res: 58.50, 58.98, 60.00, 60.22
Sup: 57.75, 57.46, 57.15, 56.50
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