Oil prices climb for the third consecutive day amid improving sentiment

WTI oil prices climbed for the third consecutive day, driven by improved sentiment as recession fears and demand concerns eased, coupled with a larger-than-expected draw in US crude inventories. Better-than-expected US jobless claims further brightened the near-term outlook.

The recovery from the new low since early February ($71.66) broke through the pivotal Fibo barrier at $76.56 (38.2% of the $84.50/$71.66 drop, also Thursday’s high), generating a fresh bullish signal after closing above the 10DMA the previous day.

The WTI contract is on track for a gain of over 3% this week, poised for its first positive weekly close after enduring heavy losses over the past four weeks.

Improving daily chart conditions (14-day momentum nearing positive territory and stochastic emerging from the oversold zone) support the recovery. A sustained break above the $76.56 Fibo level and the 20DMA ($77.31) is needed to confirm bullish signals, targeting extensions towards $78.08 (daily Kijun-sen / 50% retracement) and $78.48 (daily cloud base).

The broken daily Tenkan-sen ($75.26) now serves as strong support, expected to contain dips and maintain the near-term bullish bias.

Res: 76.74; 77.31; 78.08; 78.93
Sup: 75.84; 75.26; 74.69; 72.95