WTI extends retreat from 3-week tops, eyes $ 50

Oil futures on NYMEX is on a retreat so far this Friday and now looks to breach $ 50 mark, after the bulls ran into resistance at $ 50.50 – key psychological barrier.

The black gold moved-off three-week tops and dipped this session as markets fret that the support for the extension of the production cut deal from the OPEC and non-OPEC producers will eventually materialize. Moreover, overnight strength seen in the US dollar against its main competitors also collaborate to the downside in the USD sensitive oil.

Oil prices remain under pressure as markets anticipate yet another rise in the US rigs count data, which will be published by Bakers and Hughes later in the NA session. Also, the US dataflow and Fedspeaks will have an impact on the greenback, eventually influencing oil.

WTI technical levels        

A break above $ 50.47/50 (3-week tops/ psychological levels) could yield a test of $ 50.84/51 (Mar 3 high/ key resistance) beyond which $ 51.45 (50-DMA) could be tested. While a breach of support at $ 49.43 (200-DMA) would expose 5-DMA support of $ 49.24, below which downside opens up for a test of $ 48.56/54 (20 & 10-DMA).