WTI oil hit seven-day high at $66.58 in extension of recovery leg from $64.21 (05 June low).
Oil price holds in recovery mode and tracked by rising daily cloud base which contained larger pullback from $72.89 to $64.21.
Recovery retraced so far 23.6% of $72.89/$64.21 pullback, but there is still long way towards pivotal barrier at $67.53 (Fibo 38.2%, reinforced by 55SMA / daily cloud top) break of which is needed to confirm reversal.
Slightly stronger momentum supports, but overall bearish techs keep the downside at risk.
Price action needs to hold above rising cloud base (currently at $65.38) to keep bullish near-term bias alive.
Focus turns towards releases of US weekly crude stocks data, which are expected to give more details about the strength of demand of world’s largest oil consumer.
API report is due later today and EIA weekly crude stocks report will be released on Wednesday (forecast for 0.05 million barrels draw vs last week’s unexpected build of 2.16 million barrels.
Res: 66.58, 67.53, 68.14, 68.80
Sup: 65.99, 65.38, 64.84, 64.21
