WTI Oil is consolidating under fresh five-month high at $52.41, after the price was boosted by threats from Turkey to cut oil exports from Iraq’s Kurdistan region.
Threats come as intensified pressure on the Kurdish autonomous region over its independence referendum which is expected to show a comfortable majority in favor of independence.
This provide strong support to oil prices, as reduced supply, combined with production cut from top oil producers, could raise concerns about tighter crude supply and further boost oil price.
WTI oil price rose strongly on Monday, marking the biggest one-day gains since 18 Aug.
The price is riding on the third wave of five-wave sequence from $45.57, which met its FE 138.2% at $52.30 and could extend to $53.21 (FE 161.8%).
Meanwhile, bulls may take a breather on overbought daily conditions. Rising 10SMA underpins the action (currently at $50.51) should ideally contain dips.
Res: 52.41, 53.00, 53.21, 53.77
Sup: 51.63, 51.09, 50.77, 50.51
