WTI oil price fell almost $1 on Thursday after OPEC+ announced daily oversupply of more than two million barrels and US weekly jobless claims unexpectedly rose, warning of slowdown in economic recovery that would hurt oil demand.
However, the drop was so far short-lived as subsequent bounce retraced the most of today’s fall, bringing the price back above the cluster of daily MA’s ($42.34/$41.46 zone) which marks solid support.
Monday’s break above falling 200DMA and formation of golden cross of 10/200DMA’s adds to positive signals, as recovery from April’s low at $6.52 attempts to clear important Fibo barrier at $43.05 (61.8% of $65.63/6.52), break of which would generate signal of bullish continuation.
Oil price action depends on conflicting fundamentals, as optimism over global economic recovery that would further boost demand, is soured by weak numbers from the US which signal that recovery of the world’s biggest economy slows.
Extended sideways mode could be expected in coming sessions as oil lacks momentum to eventually break higher, but will remain biased higher as long as holding above 200DMA ($42.05).
Res: 43.05; 43.26; 43.49; 44.00
Sup: 42.34; 42.05; 41.79; 41.46
