Oil maintains strong bearish sentiment, generated on last week’s steep fall that surged through thick daily cloud and broke below psychological $50 barrier.
Long bearish weekly candle that was formed continues to heavily weigh on the market.
Today’s fresh extension below round-figure support at $48.00 met target at $47.90 (FE 238.2% of extended wave C), on which the price is currently riding.
The wave could extend towards next target at $47.32, its 261.8% Fibonacci Expansion, however, consolidative / corrective action could be expected as daily studies are strongly oversold (no firmer bullish signals yet).
Broken 200SMA offers good resistance at $48.71, with base of thick daily cloud (spanned between $50 and $53.11), expected to cap.
Res: 48.71, 50.00, 50.88, 51.58
Sup: 47.90, 47.32, 47.17, 46.38