HomeContributorsTechnical AnalysisWTI Oil Outlook: Near-Term Action Remains Capped By Daily Cloud Base

WTI Oil Outlook: Near-Term Action Remains Capped By Daily Cloud Base

WTI oil price eases on Thursday on fresh risk aversion and persisting fears about global demand recovery on rising coronavirus cases and higher supplies from OPEC+ group.

The price action remains capped by daily cloud base for the second day and has recorded two strong rejections on probes through $40 barrier on Wed / today.

Mixed daily studies lack clear direction signal but negative fundamentals and bearish bias under cloud base, keep near-term focus skewed lower for now.

Expect initial bearish signal on break of converged 100/200 DMA’s ($39.35), which will be verified on extension and close below $38.90 (bull-trendline off $36.11, 8 Sep low / 50% retracement of $36.11/$41.69 rally).

Conversely, sustained break of $40 pivot would sideline immediate downside threats.

Res: 40.05, 40.32, 40.77, 40.93
Sup: 39.58, 39.35, 39.19, 38.86

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