WTI oil holds in green for the fifth consecutive day on Monday, in extension of recovery from December’s multi-month low at $42.36.
Fresh advance probes through $49.00 round-figure barrier and cracked falling 30SMA ($49.23) after Friday’s close above 20SMA ($48.02 which now acts as initial support) generated bullish signal.
Hopes that OPEC production cut would stabilize oil market which was in free fall since early October (down 44%) support recovery (oil is up 13% from 24 Dec low).
Recovery eyes pivotal barriers at $49.89/$50.00 (Fibo 61.8% of $54.54/$42.36/psychological barrier), with sustained break to open falling 10SMA ($50.90) and 200SMA ($52.25) in extension. Improving daily techs and completion of Morning Doji Star reversal pattern on weekly chart add to positive outlook.
Res: 49.89; 50.00; 50.90; 51.67
Sup: 48.11; 48.02; 46.63; 46.11
