WTI oil rose to new 11-month high on Friday and on track for significant weekly gain and first weekly close above $50 level since mid-Feb 2020.
Positive sentiment was boosted by Saudi Arabia’s decision to make voluntary cuts to its production by one million barrels per day and rise in global stocks that lifts risk appetite and expectations for oil demand recovery acceleration.
Bulls extend into fourth straight day and eye Fibo barrier at $51.68 (76.4% of $65.63/$6.52 fall), break of which would open way towards pivotal barriers at $53.18/$54.62 (20 Feb lower top).
Overbought daily RSI and stochastic suggest that bulls may take a breather and consolidate, before attacking $51.68 Fibo resistance.
Broken psychological $50 level now offers solid support which is expected to ideally contain, with extended dips expected to find ground above rising 10DMA ($49.03) and keep bulls intact.
Monthly cloud twists in Feb ($59.54) and expected to attract bulls.
Res: 51.32, 51.68, 52.00, 53.18.
Sup: 50.78, 50.36, 50.00, 49.03.
