WTI oil held strong bullish mode at the beginning of the week and surged through psychological $70 barrier, hitting new 3 ½ year high at $70.67 on Monday.
The oil extends steep rally off $66.84 trough in the fourth straight day and generated bullish signal on Friday’s completion of near-term $69.54/$66.84 corrective phase.
Break of psychological $70 barrier was strong bullish signal as the price hesitated under the barrier for two weeks.
Strong bullish sentiment was boosted by rising concerns about the US pulling out the Iran nuclear deal which could cause stronger uncertainty further tightening in global oil market.
President Trump has until 12 May to decide whether the US will pull out of agreement to curb Iran’s nuclear program in return to lifting sanctions on Iran’s oil export.
Eventual close above $70 barrier would generate signal continuation of larger uptrend which eyes targets at $74.94 (04 Oct 2011 low), with possible extension towards $76.35 (Fibo 61.8% of $107.45/$26.04 fall).
Bullish techs and positive sentiment continue to underpin, with rally to be likely interrupted by corrections on overbought studies, with all eyes on President Trump’s decision about nuclear deal with Iran.
Res: 70.67, 71.00, 71.21, 71.60
Sup: 70.00, 69.54, 69.32, 68.75
