Oil Recovers Back Above $43.00 Mark
Following a dip to $42.48 during early European session, WTI crude oil future has witnessed a rebound back above $43.00/barrel mark.
Retest of a previous strong resistance near $42.50-40 level, marking 200-day SMA and highs tested in Mar. April, and a subsequent bounce back to the broader trading range between $44.50-$42.50 suggest near-term consolidating before the black gold determines next leg of move in either direction.
Technical levels to watch
A sustained trade above $43.00 mark is likely to assist the commodity to move higher initially towards $43.55-60 resistance ahead of $43.80 strong resistance. Further up-move beyond $44.00 round figure mark might continue to face stiff resistance at the upper end of the trading range near $44.40-50 area. The $44.50 resistance area also coincides with 61.8% Fibonacci expansion level of 27.73-42.46 up-move and subsequent retracement and hence, a decisive break-through this important resistance would set the stage for a fresh leg of up-move for crude oil prices.
Conversely, failure to sustain strength above $43.00 mark and a subsequent break below the lower end of the trading range, $42.50 strong support, the commodity might witness some corrective move in the near-term.