WTI oil eases in early Monday trading after opening with a gap higher and price rose new two-month high ($79.27).
Growing tensions in the Middle East and fall in Russian refined products export, continue to fuel fears of supply disruption and lift oil prices.
Last week’s 6.3% rally (the biggest weekly gain since the last week of November) registered a marginal close above pivotal Fibo barrier at $78.13 (38.2% retracement of $95.00/$67.70 downtrend).
Monday’s rise probed briefly above the top of thick daily Ichimoku cloud ($78.75) but gains were capped by falling 100DMA ($79.73).
Strongly overbought daily studies and fading bullish momentum contributed to current pullback, which accelerated during European session on Monday.
Broken 200DMA offers initial support at $77.43, followed by $76.91 (Fibo 23.6% of $69.27/$79.27 upleg) and $76.16 (former recovery top of Dec 26).
Extended pullback should find firm ground at $75.00 zone (near Fibo 38.2% of $69.27/$79.27 / rising 10DMA) to mark a healthy correction ahead of fresh push higher and attack of pivotal barriers at $79.73/$80.00 (100DMA / psychological).
Res: 78.13; 78.75; 79.37; 80.00.
Sup: 77.42; 76.91; 76.16; 75.45.
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