WTI oil holds firm on Friday after pullback from new 3 1/2 year high at $74.01 (posted on Friday) found footstep at $72.92 before the price moved higher again. Expectations were for deeper pullback on profit-taking at the end of the week, which was marked by strong rally of oil price, but dip could be so far described as minor and bulls remain firmly in play. Investors continue to take advantage of strong bullish sentiment, helped by output reduction from Libya and Canada and sanctions on Iran, as well as lower than expected production increase from major oil producers, which was designed to prevent shortage in oil market and upbeat crude inventories data. WTI oil is on track for the second straight strong bullish weekly close which would underpin for further advance and weekly close above previous top at $72.89 is needed to confirm and signal extension of two-week rally from $63.58 trough. Bulls eye next significant barrier at $76.35 (Fibo 61.8% of $107.45/$26.04, Jun 2014 / Feb 2016 fall) violation of which would unmask psychological $80 barrier. Daily tech are bullish and maintain strong momentum, ignoring for now overbought conditions, however, corrective action could be anticipated in coming sessions.
Res: 73.65, 74.01, 75.09, 76.45
Sup: 72.92, 72.19, 71.55, 70.55
