WTI Oil price consolidates on Monday after Friday’s strong rally which fully retraced last Tuesday’s sharp $56.75/$54.80 fall.
Friday’s close above 10SMA ($56.33, now again acting as initial support) was bullish signal.
Overall structure remains bullish as correction was contained by rising 20SMA, leaving higher low at $54.80 ahead of Friday’s surge.
Bullish bias needs confirmation on repeated close above $56.72 (Fibo 61.8% of $57.90/$54.80 pullback) to $57.90 peak for retest.
Otherwise, extended consolidation above 10 SMA could be seen as likely near-term scenario.
Increased downside risk could be expected on close below 10SMA.
Res: 56.72, 57.17, 57.90, 58.46
Sup: 56.33, 55.82, 55.27, 54.80
