WTI OIL consolidates under new high; bulls remain intact and look for $70+ extension; OPEC meeting in focus

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil holds within narrow consolidation on Friday, near new over three-year high at $69.54, posted on Thursday.
Bulls showed hesitation on approach to psychological $70 barrier and eased to $67.90 on overbought conditions.
Daily studies remain in firm bullish setup and supported by positive sentiment which keeps bullish bias for fresh $70 + advance.
OPEC members and Russia meet in Saudi Arabia and said that global oil glut has been virtually eliminated, mainly thanks to OPEC-led global supply cut action which so far gave good results in tightening global oil market.
Also, top world oil producers showed no signs of stopping the deal, with Saudi Arabia suggesting to extend program into 2019, however, traders will be closely watching next steps of OPEC, as some suggestions about easing output restrictions were heard.
Broader recovery from $26.04 (11 Feb 2016 low) could extend towards $76.35 (Fibo 61.8% of larger 107.45/26.04 downtrend) on firm break above $70 pivot.
Meanwhile, extended consolidation could be anticipated before bulls resume, with stronger downticks to face solid supports at $66.82/64 (rising 10SMA / previous high of 25 Jan).

Res: 68.50; 68.89; 69.54; 70.00
Sup: 67.90; 67.74; 66.82; 66.64

Interested in WTI technicals? Check out the key levels

1. R3 68.54
2. R2 68.44
3. R1 68.38
PP 68.28
1. S1 68.22
2. S2 68.12
3. S3 68.06

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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