WTI oil price edges higher on Tuesday after previous day’s strong fall was rejected just above daily cloud base and today’s action is supported by formation of 20/55SMA bull cross. However, weakening momentum on daily chart warns of recovery stall as techs are mixed and lack clearer direction signal. Oil prices were boosted by US sanctions on Venezuela that may reduce country’s oil export to the United States. On the other side, signals of global growth slowdown, with focus on Chinese economy, top Asian and the second world oil consumer, maintains pressure on oil prices. Trader will be looking for today’s release of API crude stocks report and Wednesday’s EIA report, which would provide fresh signals. Stronger bearish signal can be expected on sustained break and close below falling thick daily cloud, while lift above 10SMA ($52.95) is needed to ease existing downside risk and open way towards key near-term barrier at $54.48 (21 Jan recovery high).
Res: 52.95,53.62,53.91,54.48
Sup: 51.83,51.32,50.97,50.38
