WTI oil is holding within narrow consolidation just above key support at $64.43 (16 Aug low) after strong fall previous day (WTI contract was down over $2 on Wednesday).
Oil prices were additionally pressured by increased output from OPEC (the highest production since 2016) which aims to prevent any shortage in the oil market when US sanctions on Iran start on 04 Nov) and disappointing PMI data from China which signal that the economy is weakening and could negatively affect demand from the world’s second biggest economy.
WTI ended the month of October with over 11% fall, which marked the biggest monthly loss since July 2015.
Steep downtrend from $76.88 (03 Oct peak) remains intact and looks for break below $64.43 pivot to extend weakness towards next key supports at $63.66/57 (top of rising daily cloud / Fibo 38.2% of $42.04/$76.88 uptrend).
Bears so far show no signs of fatigue but daily indicators are entering oversold zone and warn that bears may take a breather before attempts to break $63.66/57 pivots.
Falling 10SMA offers solid resistance (currently at $66.87) and should ideally cap corrective upticks.
Res: 65.18, 65.73, 66.87, 67.50
Sup: 64.43, 64.00, 63.66, 63.00
