WTI technical analysis: Bulls hold above 50% retracement level with eyes on 56 handle
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- Bulls hold above 50% Fibo as price corrects and firms in 54 handle.
- Bears will target 47.56 as the 78.6% Fibo on a break below 50.50.
WTI is currently trading at 54.76 in Asia, up 0.09% following a sharp 1% rise overnight following OPEC production cut sentiment underpinning the bullish case for oil. "Momentum indicators continue to fire downside signals, but CTAs could soon be reaching their target positions in WTI, suggesting that downside flow could soon ease," analysts at TD Securities argued.
From a technical standpoint, the price is hovering above a 50% retracement of the late Dec to 2019 range. Bulls can target a test of the 20, 50 and 200 daily moving averages up ahead towards the 56 handle. However, a break below the 50.50 level could trigger a run towards 47.56 as the 78.6% Fibo.
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