WTI OIL outlook: Easing after 5% rally on Friday could be positioning for fresh advance
|US CRUDE OIL
WTI oil eased from new one-month high at $69.36 and is down around 1% on Monday, as traders took some profits from Friday’s over 5% rally which marks the biggest one-day gains since 30 Nov 2016.
Markets reacted on decision of major world oil producers to start pumping more oil to compensate shortage in global production.
Oil prices rose sharply on Friday as output increase, agreed on OPEC meeting last Friday, was smaller than initially anticipated.
Oil producers also decided to return to their agreement to cut output until the end of 2018, which keeps positive sentiment and supports oil prices.
Also, slight decline in US oil production after four straight weeks of increases, supports the notion, along with bullishly aligned daily studies.
Current easing under key barriers at $69.33 (Fibo 61.8% of $72.89/$63.58 descend) and $69.43 (daily cloud top) could be seen as consolidation before fresh upside.
Eventual break above $69.33/43 pivots, as well as psychological $70 barrier, would generate strong bullish signal for extension of recovery from $63.58 (18 June low).
Sideways-moving daily Kijun-sen ($68.00) holds for now, keeping intact next pivotal support at $67.15 (Fibo 38.2% of $63.58/$69.36 recovery leg), where extended dips should ideally find ground to keep fresh near-term bulls intact.
Break below $67.15 would sideline bulls and risk extension towards next strong support at $66.20 zone, where 10/20SMA bull-cross has formed.
Res: 68.94; 69.43; 70.00; 70.69
Sup: 68.00; 67.70; 67.15; 66.47
Interested in Oil technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.