WTI oil remains in a free fall and fresh bearish acceleration on Friday hit new 2018 low at $51.72 (the lowest in thirteen months).
Fears of oversupply in oil market as forecasts for 2019 show the supply is going to exceed demand and global growth slowdown which could also strongly impact demand, are the key factors that keep oil prices under strong pressure.
WTI contract was down 5% in Asia and half of the European session, with mild recovery to be expected on oversold techs and week-end profit-taking.
Bears so far showed little reaction on signals that OPEC and Russia may start reducing the output in order to balance oil market.
Overall bearish outlook is expected to remain intact while the price holds below falling 10SMA ($55.54) and would keep in focus targets at $50.26/00 (Fibo 76.4% of $42.04/$76.88 / psychological support).
Break and close above 10SMA would sideline immediate downside risk, but stronger signals of correction would require extension and close above falling 20SMA ($59.31) and psychological $60.00 barrier.
Res: 54.09, 54.80, 55.53, 57.43
Sup: 51.72, 51.00, 50.26, 50.00
