WTI OIL Outlook: Oil price regains traction after shallow pullback
US CRUDE OIL
WTI oil price rises on Tuesday after shallow pullback from new 2019 high at $60.37 found footstep and managed to close twice above cracked 10SMA (currently at $58.87), keeping broader bulls intact.
Limited pullback was price adjustment ahead of fresh advance as overall picture remains bullish.
Positive sentiment was dented by weak data in past few sessions but traders eye OPEC+ action in reduction and US sanctions on other key oil exporters, Iran and Venezuela, as key support factors that will continue to boost oil price.
Fresh bulls eye again cracked psychological $60 barrier, with final break and close above it expected to signal for further advance towards next key barrier at $61.66.
Strong bullish momentum on daily chart supports scenario.
Focus turns towards releases of US crude inventories reports (API report is due later today and EIA will release its report on Wednesday.
Last week's unexpectedly strong draw in crude stocks boosted oil prices and repeated positive results would offer further support.
Rising 10SMA continues to track and bullish stance will remain intact while it holds.
Res: 60.05; 60.37; 61.00; 61.66
Sup: 58.87; 58.16; 57.81; 57.22
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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.
