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WTI Oil Outlook: Bears Look For Final Break Below Psychological $50 Support After Consolidation

WTI oil ticked higher on Monday, consolidating last Friday’s (already named in the markets as ‘black Friday’) 6.5% fall. Marginal recovery (0.7% so far) which was slightly above Fibo 23.6% of Friday’s $54.09/$50.09 fall, could be seen as consolidative action and more as hesitation at psychological $50 support, approached on Friday’s fall to $50.09 low, before bears resume. The sentiment remains very negative and along with firmly bearish techs (WTI contract closed the seventh straight week in red last Friday and also generated bearish signal on close below 200WMA), keeps strong bearish bias in play. Eventual break below $50 pivot would signal further weakness which could test support at $45.57 (31 Aug 2017 low) and risk stretch towards higher base at $42.00 zone. Extended consolidation is expected to hold under broken 200WMA ($52.30) to keep bears intact.

Res: 51.40, 52.56, 54.09, 54.80
Sup: 50.00, 49.10, 46.99, 45.57

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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