WTI oil price regained traction on Monday after Friday’s trading was shaped in Doji candle and returned above $50 barrier. Fresh bulls are establishing above weekly cloud top ($49.87) which was dented last week but failed to close above the cloud and eye last week’s high at $50.48 (the highest since 25 May). Long weekly bullish candle (oil price rallied near 5% last week) underpins, along with firmly bullish daily techs. Eventual close above cracked Fibo 61.8% retracement of $55.01/$42.04 ($50.06) former top of 01 Aug at $50.41, would generate stronger bullish signal for resumption of recovery leg from $42.04 (1 June low) towards next barrier at $51.98 (25 May peak). Psychological $50 level now acts as initial support, followed by broken 200SMA ($49.57) which is expected to keep the downside protected.
Res: 50.41, 50.48, 50.77, 51.00
Sup: 50.00, 49.57, 49.00, 48.73
