WTI oil price moved higher on Friday as news that Saudi Arabia would reduce exports in August, sidelined fears of oversupply in oil market. Near-term action is congested between $67.02 and $70.16 and showing no clear direction as daily techs are giving mixed signal. Steep fall from $74.67 was contained by rising 100SMA with double-bottom left at $67.02, but recovery action stalled at $70.16 on Thursday. Subsequent pullback left bearish daily candle with long upper shadow which signaled strong upside rejection and generated negative signal. Price is holding between 100SMA ($67.39) and 55SMA ($69.37) which mark initial pivots with break of either side to generate fresh direction signal. Overall structure is bearishly aligned and oil is on track for the second weekly close in red, which keeps near-term bias with bears. Eventual break below 100SMA would signal continuation of larget downtrend and expose next target at $66.36 (Fibo 76.4% of $63.58/$75.34 rally). Falling 10 SMA caps and maintains negative tone (currently at $70.01) and only close above here would ease downside risk.
Res: 68.89, 69.37, 69.79, 70.01
Sup: 67.79, 67.39, 67.02, 66.36
