WTI crude oil breaks major hurdle of US$55.80
Crude oil prices are oscillating in a rising channel since January 2019, considering the daily time frame. Last week, crude oil prices closed above 4 weeks consolidation and formed bullish engulfing candle on week scale, which suggests bulls were in dominant position.
Crude oil opened above two major hurdles, on Monday. One is 100-day exponential moving average, which is currently placed at $56.30 and second one is 38.2 per cent of Fibonacci retracement, level of its entire downward move started form the high of October 3, 2018 to the low of December 24, 2018.
Among the momentum indicators, the 14-period RSI on daily chart is in rising trajectory and the stochastic is trading in the overbought zone, but fast stochastic is still trading above its slow stochastic line, which suggests bullish bias.
Going ahead, the immediate hurdle is placed near US$58.10, A follow-through move above this level would lead to an extension of the pull-back toward 200-day EMA, which is currently placed at US$59.22. While on the downside, 20-day EMA is likely to act as a strong support, which is currently quoting around US$53.58.