- WTI is struggling above the 61.8% Fibo down in the 63.70s and stochastics are well overbought.
- However, a higher run will open the 70 handle, a touch above the 78.6% Fibo where the price has not traded since Oct 2018.
- At this juncture, the bulls could well have run out of staying power but an additional bearish candle on a daily basis would be required to cement that analysis – a daily close below the 61.8% Fibo, or, ideally an engulfing bearish close below 8th Aprils low would open the case for 61.80 and then a test of the 200-D SMA – (61.20).
- If the 200-DMA gives out, bulls could well be trapped in a long squeeze to cloud support and the rising wedge’s support line. A break of the support line and below $57.80 opens the case for a continuation of the bear trend that would target below the $42 handle and late Dec lows.
Extra reading: US EIA cuts world oil demand growth forecast 2019 by 50K Bpd
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