WTI oil eventually cracked psychological $50.00 barrier (also top of weekly cloud) on Monday, but showed strong hesitation at the resistance on quick pullback below broken 200SMA ($49.41), to pressure broken bull-channel resistance at $49.14.
Reaction at $50.00 barrier was expected, as traders also booked profits after last week’s strong rally (the biggest weekly advance since the last week of Nov 2016).
Deeper pullback could be anticipated as slow stochastic is reversing in deep overbought territory.
Daily close below 200SMA will be bearish signal for further correction. Friday’s low at $48.85 marks next support, ahead of more significant $48.25 level (Fibo 38.2% of $45.39/$50.01 upleg) where extended dips should be ideally contained, before bulls resume towards targets at $50.13 (FE 123.6% of the wave C from $43.63) and $50.27 (29 May high).
Res: 50.01; 50.13; 50.27; 50.50
Sup: 49.14; 48.92; 48.25; 47.70
