WTI oil maintains bullish tone on Tuesday and consolidating under new four-month high, as sentiment remains positive after weekend’s attack at Saudi oil installations that sparked strong rally of oil price.
Despite immediate reaction of the US government in releasing emergency stocks and prevent disruption in supply and sideways-moving technical indicators (momentum / RSI), strong bullish tone persists.
Oil price has established above psychological $60 barrier (for the first time after two months) after Monday’s opening with massive gap higher and shows scope for further advance.
Bulls focus pivotal barrier at $63.69 (Fibo 61.8% of $76.88/$42.36), violation of which would open way for extension towards 2019 high at $66.58 (23 Apr).
Break and close above important barriers at $59.62 (weekly cloud top) and $61.08 (100WMA) generated bullish signals and support scenario.
Former tops at $60.96/90 and psychological $60 level, mark solid supports which are expected to keep the downside protected. US crude stocks reports (API is due later today and EIA tomorrow) are in focus for fresh signals.
Res: 62.56; 63.36; 63.69; 64.00
Sup: 61.58; 60.90; 60.00; 59.62
