WTI Oil outlook: Bulls hold grip on growing supply disruption concerns

WTI Oil

WTI oil keeps firm tone and holding near new multi-month high ($67.27), with limited negative impact from Monday’s daily candle with long upper shadow, which was created on spike to new high and subsequent quick pullback.

Near-term price action is moving around cracked pivotal barrier at $66.30 (50% retracement of $77.73/$54.87 bear-leg), as fading bullish momentum and overbought stochastic on daily chart, so far sour bullish sentiment and limit gains, although overall picture remains very bullish (DMA’s in full bullish configuration with several bull crosses being formed recently.

Geopolitics, however, remain oil’s key driver nowadays, with growing fears that conflict between the US and Iran can escalate at any time, fueling market anticipation of stronger supply disruption and keeping oil price well supported for now.

Sustained break of $66.30 to open way for renewed attack at weekly cloud top ($67.23) violation of which to generate initial signal of bullish continuation and expose next targets at $69.09 (Fibo 61.8%) and $70 (psychological).

Monday’s low ($65.38) offers solid support), ahead of converged and ascending 10/20 DMAs ($64.70 and $64.38).

Res: 67.23; 68.00; 69.09; 70.00.
Sup: 66.00; 65.38; 64.70; 64.38.