WTI Oil outlook: Oil prices rise for the third straight day as sentiment improves
WTI Oil
WTI oil price rises for the third straight day, boosted by improved sentiment on fading recession fears and demand concerns and larger than expected draw in US crude inventories, with better than expected US jobless claims adding to brightening near term outlook.
Recovery from new lowest since early February ($71.66) cracked pivotal Fibo barrier at $76.56 (38.2% of $84.50/$71.66, also Thursday’s high), generating fresh bullish signal after close above 10DMA the previous day.
The WTI contract is on track for over 3% weekly gain and for the first positive weekly close after suffering heavy losses in past four weeks.
Improving conditions on daily chart (14-d momentum is about to break into positive territory and stochastic to emerge from oversold zone) underpin recovery, which needs to clear $76.56 Fibo level and 20DMA ($77.31) to confirm bullish signals for extension towards $78.08 (daily Kijun-sen / 50% retracement) and $78.48 (daily cloud base).
Broken daily Tenkan-sen ($75.26) reverted to solid support which should contain dips and keep near-term bias with bulls
Res: 76.74; 77.31; 78.08; 78.93.
Sup: 75.84; 75.26; 74.69; 72.95.
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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.
