Oil price ticked higher on Tuesday, attempting to stabilize above $46.00 handle, for renewed attempt towards initial barriers at $46.79/92 (Fibo 23.6% of $51.98/$45.19 descend / falling 10SMA), after rally on Monday saw strong upside rejection at $46.69.
Initial signs of recovery are building after recent bears found footstep at $45.19/25 (lows of 08/09 June) where basing attempt is seen.
Slow stochastic on daily chart reversed from oversold territory and is signaling correction, with signs from Saudi Arabia for making significant oil export cut in July, additionally supporting oil price.
Firm break above falling 10SMA is needed to signal further recovery which may extend towards barriers at $47.78 (Fibo 38.2%) and $48.48 (05/06 June lower platform).
Conversely, failure to clear 10SMA pivot would signal extended consolidation and keep the downside at increased risk.
Res: 46.79, 46.92, 47.17, 47.78
Sup: 46.00, 45.65, 45.19, 44.81
