WTI oil price eases on Monday after posting marginally higher high at $46.42 vs high at $46.34, posted after strong rally on Friday.
Strong recovery rally from $42.04 came close to key near-term barrier at $46.69 (12 June lower top) but may take a breather before final push higher.
Daily Kijun-sen (46.16) is marking strong obstacle and so far limits the upside, while slow stochastic is reversing in overbought territory and signaling correction.
Extended dips should find support at $44.80 zone (20SMA/Fibo 38.2% of $42.04/$46.42) before bulls resume.
Positive sentiment is building up in the markets on fading concerns about global oversupply that kept oil price under strong pressure and may trigger stronger recovery on sustained break above $46.69 pivot.
Alternatively, break below $44.90 would risk deeper pullback and sideline immediate bulls for extended correction towards $44.23 (daily Tenkan-sen) and $43.71 (Fibo 61.8% of $42.04/$46.42 upleg).
Res: 46.42, 46.69, 47.01, 47.41
Sup: 45.90, 45.39, 44.80, 44.23
