WTI oil price shows initial signs of stall as bulls were so far unable to extend above top of thickening daily cloud (48.07).
Oil is failing to capitalize from bullish signal on Monday’s rally which closed above daily cloud top / Kijun-sen ($47.89), suggesting that further consolidation is needed before renewed attempts higher.
Bullish setup of daily studies supports scenario, with dips being so far contained by rising 10SMA and allowed down to 20SMA ($47.62) ahead of fresh rally.
Bullish scenario requires sustained break above daily cloud to open way towards double-Fibonacci barriers at $48.48/56 (Fibo 61.8% of $49.40/$46.99 and Fibo 61.8% of $50.41/$45.57 descend) which marks next pivotal barrier.
Otherwise, loss of these supports would increase downside pressure towards pivotal support at $47.48 (daily Tenkan-sen) and risk extension towards Monday’s low at $46.99 on break.
Res: 47.89, 48.11, 48.56, 48.83
Sup: 47.62, 47.48, 47.26, 46.99