WTI Oil outlook: WTI extends recovery on supply worries, peace talks pessimism
|WTI oil extends recovery into fourth consecutive day, with fresh acceleration on Monday, being sparked by renewed supply concerns after Ukraine attacked Russian oil installations.
Escalation of geopolitical situation and discouraging signals from the peace talks are currently the key drivers of oil price, although rally might be facing headwinds from lower demand if tensions rise further.
Technical picture is improving following formation of bullish engulfing pattern on weekly chart, as well as break of 100DMA ($64.24), as recovery approaches next pivotal barrier at $64.90 (Fibo 38.2% of $70.50/$61.44).
Firm break here would provide fresh impetus to renewed bulls and open way for further recovery but overbought stochastic on daily chart and north-heading 14-d momentum being still below the centreline, warning of potential recovery stall.
Repeated close above broken Fibo 23.6% ($63.58) is minimum requirement to keep fresh bulls in play, with sustained break above $64.90 to expose $65.97 (50% retracement / daily Kijun-sen) violation of which to further strengthen near-term structure.
Daily cloud twist on Friday, could be also magnetic.
Res: 64.90; 65.12; 65.97; 66.50
Sup: 64.00; 63.58; 63.07; 62.51
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.