WTI oil edged higher on Tuesday and holding above $51 handle as two-day pullback from new recovery high at $53.29 stalled on approach to psychological $50 support.
Near-term picture remains bullish but recovery leg from $42.36 low was so far capped by falling 55SMA (currently at $53.06) and also facing strong headwinds from falling thick daily cloud (clod base lays at $54.37).
Daily 10/20/30 SMA’s in bullish setup (created double bull-cross) and strong bullish momentum underpin the action, but neutral daily RSI and heavy daily cloud partially offset positive signals. Fundamentals are also mixed as OPEC club supply cut generates positive signal while rising fears about global growth slowdown continue to weigh. API crude stocks report, due later today, is expected to provide fresh signal, along with Wednesday’s EIA crude stocks report.
Initial supports lay at $50/$49.80 (psychological/10SMA), followed by $49.28 (30SMA) and lower pivot at $47.89 (20SMA) break of which will be bearish.
Bullish scenario requires lift above 55SMA as initial signal which would get confirmation on penetration of daily cloud.
Res: 51.35; 52.08; 53.06; 53.29
Sup: 50.38; 50.00; 49.80; 49.28
