WTI oil remains in red for the third straight day, weighed by renewed supply concerns over fresh rise in new virus cases in Asia, progress in talks towards a deal to lift sanctions on Iran, that would boost global supply and rise in US crude stocks.
Fresh weakness pressures Wednesday’s low at $61.95 (the lowest in a more than three weeks), with a sustained break here to open way towards key supports at $60.97 / $60.60 (Fibo 61.8% of $57.25/$66.99 / Apr 22 trough).
Weakened daily studies (10/20/30/55 DMA’s turned to bearish setup and momentum is holding in the negative territory) support fresh bears, with magnetic Monday’s daily cloud twist adding to negative signals.
Broken Fibo support at $62.12 (38.2% of $57.25/$66.99) reverted to strong resistance which should keep the upside protected and maintain fresh bearish bias.
Res: 62.75, 63.27, 63.97, 64.33.
Sup: 61.95, 61.41, 60.97, 60.60.
