WTI oil fell to new lowest level ($64.08) since Nov 2021 on Monday, as sentiment continues to weaken on growing fears that crisis in banking sector could deepen, with potential increase of US interest rates, to lead into recession, which would significantly hurt fuel demand.
Traders closely watch movements in the stock markets, as banking stocks continued to fall despite the deal in which the UBS, the largest bank in Switzerland, bought troubled Credit Suisse, suggesting that the risk is still high and investor confidence remains fragile.
Additional support was provided by world’s major central banks, which promised to boost market liquidity and support other struggling banks.
Markets are likely to remain volatile, on growing fears that situation in banking sector could deteriorate and awaiting the decision of the US Federal Reserve’s Federal Open Market Committee, which ends its policy meeting on Wednesday.
Daily studies are in full bearish setup but oversold, warning that bears may take a breather before resuming lower, as long tails of daily candles in for consecutive days, signal strong bids, provided by 200WMA ($66.17) where the latest fall found a footstep.
Consolidation is likely to be limited, as the action remains weighed by a large bearish weekly candle (the WTI contract price lost over 13% of its value last week), as well as weakened sentiment.
Broken psychological $70 support reverted to solid resistance, after a weekly close below this level and should ideally cap the action, to guard falling 10DMA ($72.10) and broken bull-trendline ($73.64), which should limit extended upticks, to keep bears in play.
Res: 69.61; 70.00; 72.10; 73.64.
Sup: 64.08; 62.42; 61.80; 60.00.
 since Nov 2021 on Monday, as sentiment continues to weaken on growing fears that crisis in banking sector could deepen, with potential increase of US interest rates, to lead into recession, which would significantly hurt fuel demand.){kind=link}