Technical Analysis

Technical Outlook: Oil Price Remains Under Pressure But May Extend Consolidation While Above Psychological $50.00 Support

Typography

US oil is on track for strong bearish weekly close (the first one after three weeks in green) signaling extension of pullback from $53.74 high, posted on 12 Apr.

The price found temporary footstep at $50.06, low of Wednesday’s strong fall, with downside being reinforced by daily Kijun-sen line, currently at $50.40.

Yesterday’s close below thin daily cloud maintains bearish pressure, however, oil price may hold in extended consolidation while above $50.06 low.

Limited upside attempts are expected, with daily cloud (spanned between $50.74 and $51.15) offering initial resistance and extended upticks expected to hold below daily Tenkan-sen line at $51.90.

Eventual break below psychological $50.00 support would open immediate target at $49.62 (Fibo 61.8% of $47.07/$53.74) and may accelerate to $48.70 (weekly Kijun-sen) in extension.

Oil price remains under pressure on fears that increased US shale oil production may offset OPEC attempts to support prices by reducing oil production.

Res: 50.74, 51.15, 51.36, 51.90
Sup: 50.40, 50.06, 49.62, 48.70

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Windsor Brokers Ltd
Author: Windsor Brokers LtdWebsite: http://www.windsorbrokers.com/
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