WTI oil is consolidating after 4.2% advance on Monday (the biggest one-day gains since July 18), but keeping positive near-term stance, following a bullish signal on Monday’s close above 200DMA ($95.87) which capped the action for some time.
Profit-taking from a three-month fall from $123.65 to $85.35) lifted oil prices, along with improved sentiment, though investors remain concerned by high inflation which is near a double-digit level in a number of Western economies that may spark further aggressive actions in raising interest rates that would cool demand.
The price is also weighed by weakened risk appetite and increased Russia’s oil output that adds to signals of possible recovery stall.
Fresh bulls need a firm breakthrough pivots at $99.00 (daily cloud base( and $100 level (psychological/Fibo 38.2% of $123.65/$85.35) to signal stronger recovery and sideline larger bears.
Otherwise, recovery may lose traction on failure under these barriers, with return below 200DMA tio signal that bears are regaining control.
Res: 97.62; 98.25; 99.00; 100.00.
Sup: 95.87; 95.07; 94.39; 92.28.
