WTI oil price rose above $28 on Friday, approaching key barriers at $29.05/10 (daily cloud base/Fibo 38.2% of $65.63/$6.52). Improved sentiment on gradual easing of lockdown measures, re-start of China’s economy and signs of further production cut, inflate oil prices. Oil is on track for the third consecutive strong weekly gains (up 16.3% for the week so far) that adds to reversal signals. Bulls may fail on initial attempt at critical barriers at $29.05/10 and $30 as thick falling daily cloud weighs heavily and daily stochastic is overbought, while traders may collect some profits at the end of the week. Consolidation should stay above rising 10DMA ($24.99) to maintain bullish bias. Break above $30 would generate strong bullish signal for extension towards $36.08 (50% retracement of $65.63/6.52) and $38.99 (falling 100DMA).
Res: 29.05, 30.00, 33.74, 36.08
Sup: 27.22, 25.77, 24.99, 23.69
