WTI Oil is operating on slippery floors, but holds above 200-DMA
|US oil jumped to a high of $50.17 in the North American session on the bullish US inventory report, only to fall back to $49.18 levels. As of writing, oil was trading at $49.35/barrel, down 26 cents or 0.52%.
The decline from $50.17 to $49.35 is clearly indicates the sentiment is bearish. Moreover, there is a perception in the market that every one barrel of output cut by OPEC end up subsidizing a barrel of shale output. That is keeping the oil prices under pressure.
Nevertheless, the bullish US inventory report released in the NA session is helping oil hold above the 200-DMA level of $49.05.
WTI Oil Technical Levels
A daily close below the 200-DMA level of $49.05 would mark the continuation of the retreat from $53.74 (Apr 12 high) and open doors for $47.86 (Mar 20 low) and $47.11 (Mar 27 low).
On the higher side, breach of resistance at $50.17 (previous day’s high) would shift risk in favor of a corrective rally to $50.80 (Mar 31 high) and $51.25 (Feb 8 low).
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