US oil remains under strong pressure on Friday and slid to fresh nearly six months low at $43.74 in Asia, extending Thursday’s strong fall when oil price was down 4.4% for the day.
Growing concerns about global oversupply offset OPEC’s attempts to support oil price on production cut which is likely to extend until the end of the year.
Oil price erased all gains made after OPEC’s decision and broke below former base and strong support at $47.07. Thursday’s sharp fall also took out next important supports at $46.44 (top of thick weekly cloud) and $45.32 (Fibo 61.8% of $39.20/$55.22 ascend), seeing scope for further weakness towards $42.19 (14 Nov trough), as sentiment remains firmly bearish and oil is on track for strong bearish weekly close.
Bounce from session low at $43.74 is so far seen as mild correction, however, strongly oversold daily studies suggest further corrective action.
Former base at $47.08, reinforced by daily Tenkan-sen in steep descend, is expected to ideally cap corrective rallies.
Res: 45.61, 47.07, 47.74, 48.08
Sup: 44.00, 43.74, 42.98, 42.19
