WTI oil maintains positive tone and extends higher after Monday’s close above $68.60 pivot (Fibo 38.2% of $75.34/$64.43 descend, reinforced by converged 10/55SMA’s) generated bullish signal.
Supply risks from Venezuela and Iran keep oil prices supported, but gains might be curbed by gradual output increase from OPEC.
Bullish techs (momentum broke into positive territory and continues to head up and daily MA’s in bullish setup) support the advance, but overbought slow stochastic warns of consolidative / corrective action before final attack at thinning daily cloud (69.46/70.05).
Broken Fibo barrier at $68.60 now acts as initial support, ahead of 30SMA ($67.86) and 20SMA ($67.40) which is expected to hold deeper dips.
Focus turns on releases of US crude stocks report, with private institute (API) due later today and official data (EIA) due on Wednesday, which could provide fresh signals.
Res: 69.29, 69.46, 59.89, 70.05
Sup: 68.60, 68.33, 67.86, 67.40
