- Oil prices attracted some dip-buying near 100-DMA, 50% Fibo. confluence support.
- The set-up supports prospects for a move beyond three-month tops set on June 8.
- Any meaningful pullback now seems to find decent support near the $35.55 region.
It’s Throwback Thursday and we look back to our June 8 take on WTI crude oil prices. As was anticipated, extremely overbought conditions prompted some profit-taking during the second half of last week. However, spot prices managed to attract some dip-buying ahead of an important confluence region, comprising of 100-day SMA and the 50% Fibonacci level of the January-May slump.
Some follow-through buying above the $38.00 mark should now lift the commodity back towards three-month highs, around the $39.00 level set on June 8. The momentum could further get extended towards the 61.8% Fibo. level, around the $40.40-50 region. The latter is likely to act as a key pivotal point, which if cleared would set the stage for a further near-term appreciating move.
The next relevant bullish target would be $43.30 horizontal level ahead of the very important 200-day SMA, around the $44.65 region, which should temporarily cap the upside, at least for the time being.
On the flip side, any meaningful pullback below the $37.00 mark might now seems to find decent support near the $35.55 region. Failure to defend the mentioned support might negate the constructive set-up and turn the commodity vulnerable to correct further towards the $33.00 round-figure mark.