WTI oil holds firm on Monday and probed above $52.00, hitting new 2 1/2 week high at $52.20. Signs of oil market rebalancing keep the price supported with fresh boost coming on concerns over potential output disruption after Iraqi troops clashed with Kurdish forces in Kirkuk area which is home to Iraq’s main oilfields. Technical studies remain in firm bullish setup and supportive for further advance, but bulls may take a breather before final push towards key short-term barrier at 52.84 (29 Sep peak), as slow stochastic is overbought on daily chart. Broken Fibo 61.8% barrier at $51.41 now acts as support, with extended dips expected to hold above rising 20SMA (currently at $50.89). Bullish scenario on firm break above $52.84 sees extension towards $53.74 (12 Apr high), regain of which would unmask key med-term barrier at $55.01 (21 Feb peak).
Res: 52.20, 52.41, 52.84, 53.18
Sup: 51.81, 51.40, 50.87, 50.65
