WTI oil moved higher on Monday and hit session high at $71.86, boosted by improved global sentiment after US and China put looming trade war on hold.
Oil price remains supported by geopolitical risk, as implementation of the US sanctions on Iran could cause shortage in global oil supply and also by fall in oil production in Venezuela, due to ongoing economic crisis.
Bullish techs continue to underpin oil price, as momentum continues to strengthen and rising 10SMA, which tracks the advance since early April, contained dips last week, keeping the downside protected.
Bulls eye fresh 3 ½ year high at $72.28 (posted on 17 May), break of which would expose Fibo projections at $72.48 & $72.85 (138.2% & 161.8% respectively), with stronger bullish acceleration expected to open $74.94 (Oct 2011 low) and $76.35 (Fibo 61.8% of 107.45/$26.04 fall) in extension.
Top of thick rising 4-hr cloud ($71.08) and ascending 10SMA ($71.13) mark solid supports which should ideally contain dips and keep bulls intact.
Res: 71.86, 72.28, 72.48, 72.85
Sup: 71.13, 70.65, 70.25, 70.00
