WTI oil is holding above broken key barriers at $50.00/10 (psychological barrier / Fibo 38.2% of $55.01/$47.06 descend) that were taken out on last week’s strong bullish acceleration from base that was formed at $47.00 zone.
Recovery rally peaked at $50.83 on Friday (the highest of past three weeks) where rally was temporarily capped by daily Kijun-sen line, ahead of next targets at $51.03/14 (50% retracement of $55.01/$47.06 / 100SMA).
The price is expected to consolidate under Kijun-sen barrier, with extended upticks not ruled out, as slow stochastic is strongly overbought on daily chart (no firmer bearish signal yet), with $50.00 zone (reinforced by top of thick hourly cloud, spanned between $50.00 and $49.41) expected to ideally contain and keep immediate near-term bulls intact.
Only return below hourly cloud (also near Fibo 38.2% of $47.07/$50.83 upleg) would weaken near-term structure.
Res: 50.83; 51.03; 51.14; 51.70
Sup: 50.47; 50.00; 49.41; 48.94
