WTI Oil is trading in choppy consolidation on Monday with upside attempts struggling to return above broken 200SMA ($49.44).
Oil price fell sharply on Friday after dollar rose on US jobs data and dipped to $49.09, the lowest in nearly one month (around 50% of $45.57/$52.84 rally).
Friday’s close below psychological $50 point, as well as below 200SMA, was strong bearish signal but losses were contained by rising 55SMA and further recovery could be anticipated as slow stochastic is reversing from oversold territory on daily chart and signals recovery.
Corrective rally needs close above $50 to sideline immediate downside risk and allow for further recovery. Break and close above $51.00 (daily Tenkan-sen) is needed to signal higher low at $49.09 and shift near-term focus higher.
Res: 49.76; 50.00; 50.44; 50.73
Sup: 49.03; 48.35; 47.76; 47.29
