WTI future contract is consolidating above cracked $20 level after hitting new 18-year low on Monday. Larger bears are pausing ahead of strong psychological support with limited recovery being so far capped by falling 5DMA ($22.10) which guards more significant resistance provided by descending 10DMA ($23.07). Overall picture remains negative and risk of break through $20 pivot is high as global demand was badly hit by devastating coronavirus shutdown that flooded markets with oil. Near-term action is expected to hold within consolidation/mild correction, before bears resume. Bearish bias should stay intact as long the price holds below 10DMA and keep $20 level in immediate focus, with firm break lower to spark significant bearish acceleration.
Res: 20.92; 21.99; 23.02; 23.85
Sup: 20.18; 19.40; 19.00; 18.12