WTI extends weakness on Friday and hit lowest levels since early March, following Thursday’s strong fall when WTI contract was down 4.5%.
Fresh bearish acceleration clearly broke below rising daily cloud base (after several strong spikes lower, but every time closing within the cloud) and also broke and closed below pivotal Fibo support at $57.33 (38.2% of $42.36/$66.58), generating strong bearish signals.
Strong bearish momentum and multiple bear-crosses of daily MA’s add to negative outlook, as Thursday’s long bearish daily candle weighs.
There are no obstacles on the way towards next target at $54.47 (50% of $42.36/$66.58 / weekly Kijun-sen / 8 Mar low), which is in near-term focus.
Broken Fibo support at $57.33 (also former low of 23 May) now acts as solid resistance which should ideally cap.
The price is on track for the second straight bearish weekly close and also the biggest monthly loss since Nov 2018) that adds to negative stance.
Negative fundaments on US tariffs to imports from Mexico that increase concerns about slowdown of global demand, smaller than expected fall in US oil stocks and US oi production at its record levels add to bearish outlook.
Res: 56.58, 57.33, 57.90, 58.60
Sup: 55.63, 55.00, 54.47, 53.33
