WTI oil price accelerated through $100 barrier on Monday, extending recovery from last Thursday’s spike low at $90.54 into third straight day.
Oil received fresh support from weaker dollar and renewed supply concerns that offset worries about demand on recession signals and China’s sharp slowdown in economic activity due to Covid restrictions.
Price rebounded after strong downside rejection on probe through key supports at $93.85/ $92.64 (200DMA /Mar 16 low) forming a bear-trap on daily chart and generating initial reversal signal.
Fresh bulls look for close above $100 level (reinforced by falling 10DMA) to support recovery and open way for test of next pivots at $103.19 (Fibo 38.2% $123.65/$90.54) and $103.80 (falling 20DMA), regain of which would neutralize downside risk and open way for stronger rebound.
Broken $100 level now acts as strong support which should keep the downside protected and maintain near-term bullish bias.
Res: 102.30; 103.19; 103.80; 105.21.
Sup: 100.00; 98.35; 97.43; 95.82.
