WTI oil stands at the back foot on Monday and threatening of further downside, but near-term price action so far remains limited by rising 10SMA. Oil price eases from fresh multi-month high at $52.84, posted after three straight weeks of strong rally, driven by increasing signs that effects of global oversupply that last for three years are easing. Corrective action is seen as likely scenario, however, dips were so far mild as strong bullish setup of daily studies and positive sentiment is building up. Risk of deeper pullback would remain low while the price stays above rising 10SMA which could result in renewed attempts higher. Otherwise, deeper correction towards psychological $50.00 support (Fibo 38.2% of $45.57/$52.84/rising 20SMA) could be expected on sustained break below near-term base at $51.20 zone.
Res: 51.75, 52.41, 52.84, 53.00
Sup: 51.20, 50.41, 50.00, 49.54
