WTI oil ticked higher on Tuesday, but remains within two-day range, as the price is congested after strong rejections on both sides.
Looming US sanctions on Iran which keep tensions in the markets on tightening supply, keep the price afloat, however, bearish techs on daily chart warn that bear-leg from $71.38 (04 Sep spike high) may extend lower.
Daily MA’s are in bearish configuration and converged 20/30SMA’s cap upside attempts for now, while 14-d momentum is breaking into negative territory, with little impact from oversold slow stochastic so far.
Immediate downside risk is expected to continue while the price remains capped by 20/30SMA’s, with break below cracked pivot at $67.08 (Fibo 61.8% of $64.43/$71.38 upleg) needed to confirm bearish continuation.
Break above 20/30SMA’s would ease bearish pressure, but lift and close above converged 10/100SMA’s ($68.86) is needed to neutralize and shift bias higher.
Today’s release of US API crude stocks data and tomorrow’s EIA weekly crude inventories report are eyed for fresh direction signals.
Res: 67.87, 68.86, 69.00, 69.24
Sup: 67.50, 67.08, 66.85, 66.07
