WTI oil extends advance to new five-month high at $64.77 on Tuesday, additionally boosted by threats for further supply tightening on rising violence in Libya.
Monday’s close above 55WMA ($62.82) was bullish signal, with today’s extension above important Fibo barrier at $63.69 (61.8% of $76.88/$42.36) and penetration into weekly cloud (base of cloud lays at $63.87) adding to positive outlook.
Daily close above these barriers is needed to confirm signals.
Bulls for now ignore strongly overbought daily RSI and stochastic, but corrective action should be anticipated in coming sessions.
Release API report today and EIA weekly crude stocks on Wednesday will be closely watched for fresh signals.
Last week’s surprise build in crude inventories showed little negative impact on oil prices, as strong bullish sentiment on production cut and US sanctions continues to strongly underpin the action.
Res: 64.77, 65.00, 65.37, 66.85
Sup: 64.30, 63.69, 63.36, 62.80
