US oil price ticked higher on Tuesday but so far holds below 200SMA ($49.10) which was broken on Monday’s acceleration to $48.57 low.
The price steadies as rising production in several countries balanced expectations of output cut extension for the next six months.
Technical studies remain firmly bearish on daily chart and see immediate downside risk while the price remains below 200SMA.
Extension below last week’s low at $48.19 would risk return to key supports at $47.07.
Meantime, the price may hold in extended consolidation, with extended upticks to be capped by daily cloud base at $49.69, reinforced by falling Tenkan-sen.
Conversely, penetration into thick daily cloud and violation of psychological $50.00 barrier would sideline immediate downside risk.
Res: 49.10, 49.67, 50.00, 50.18
Sup: 48.54, 48.19, 47.79, 47.07
