WTI oil price rebounds from fresh three-week low at $46.44 posted on Thursday but action remains capped by daily cloud top ($47.00) which was broken on Wednesday’s strong fall and now acts as resistance.
Oil maintains bearish bias on persisting concerns about rising global production, as Wednesday’s much stronger than expected draw in crude inventories showed no positive impact on oil price.
Repeated close within the cloud, following break and close below $47.21 (Fibo 38.2% of $42.04/$50.41 rally) will be another strong bearish signal for further extension of bear-leg from $50.41 peak.
Bears found footstep at $46.52 (55SMA) which was dented today, with sustained break lower to trigger further retracement of $42.04/$50.41 rally.
Above daily cloud top, next significant barrier lies at $47.69 (broken daily Kijun-sen).
Res: 47.00; 47.69; 48.00; 48.32
Sup: 46.44; 46.22; 45.50; 45.24
