WTI Oil Extended Recovery Rally
WTI Oil extended recovery rally and hit session high at $48.40 in early Monday’s bullish acceleration. Oil price accelerated higher on fresh geopolitical instability. So far unable to sustain break above $48.00 barrier, as action was capped by falling hourly cloud.
However, rising uncertainty over geopolitical situation in the Gulf region would further boost oil price. Additional support comes from long-tailed daily candle left on Monday, which signaled strong downside rejection and failure to clearly break below lower pivot at $46.89
Extended recovery needs close above $48.74 to generate stronger reversal signal and open way for further retracement of $46.74 towards a cluster of strong MA barriers between $49.00 and $49.66.
Session low at $47.65 marks solid support which is expected to hold dips and keep near-term focus at the upside.
Break and extension below $47.40 would signal an end of recovery rally from $46.74 and shift near-term focus lower.