WTI Oil remains in red on Friday, but near-term price action stays above initial supports at $51.16/09 (rising 10 SMA / Tenkan-sen).
Oil hit fresh multi-month high at $52.84 on Thursday, but was unable to hold gains and fell back, ending Thursday’s trading in red.
Near-term picture is mixed as the price trying to find direction after double-Doji on Tue/Wed which signaled strong indecision and possible stall of steep three-week rally.
Technical outlook remains bullish and sees scope for fresh upside after consolidation phase, which should be ideally contained above 10SMA / Tenkan-sen.
Fundamentals are also supportive as efforts from oil producers to cut global oversupply are giving results and outlook for oil demand is improving.
WTI contract is on track for the fourth consecutive strong bullish weekly close and ends the month in green, which is bullish signal.
Weekly close above cracked $51.95 barrier (Fibo 76.4% of $55.01/$42.04 Feb-June descend) is needed to generate further signal for advance towards $53.74 target (12 Apr high).
Conversely, Friday’s close below 10SMA / Tenkan-sen supports would be negative signal for deeper pullback towards psychological $50.00 support (also Fibo 382% of $45.57/$52.84 ascend).
Res: 51.75, 52.41, 52.84, 53.00
Sup: 51.32, 51.08, 50.38, 50.00
