WTI oil price edged higher on Monday but upside attempts were so far capped under $48.00 barrier. Consolidation is holding between daily Tenkan-sen ($47.48) and daily Kijun-sen ($47.92) with limited upside action as Friday’s long bearish candle that completed reversal pattern, weighs. The oil price fell sharply on Friday on concerns of stronger impact from Hurricane Irma on refining infrastructure that would lower demand for crude oil. On the other side, the price failed to extended deeper into thickening daily cloud and stayed above plethora of daily MA supports (10/20 and 55/100SMA bull-crosses are forming) that may offer an additional support and limit losses. Bullish scenario requires close above daily cloud and lift above $48.08 (Fibo 38.2% of $49.40/$47.26 downleg) to generate bullish signal, as daily studies are mixed. Otherwise, downside is expected to remain at risk while $48.00 resistance zone caps. Extension and close below Friday’s low at $47.26 will be bearish signal for fresh weakness towards next pivot at $47.03 (Fibo 61.8% of $45.57/$49.40 upleg).
Res: 47.92, 48.08, 48.33, 48.58
Sup: 47.56, 47.34, 47.26, 47.03
