WTI oil price holds in red for the third straight day and pressuring pivotal Fibo support at $75.61 (61.8% retracement of $63.63/$95.00 rally) which was dented last week, but with triple failure to register close below support and generate fresh bearish signal.
Technical picture on daily chart remains bearish as negative momentum continues to strengthen and MA’s are in bearish setup, with formation of 10/200DMA death-cross, adding to bearish near-term outlook.
Sustained break of $75.61 pivot is needed to signal continuation of a larger downtrend, which paused for a limited correction and expose next targets at $71.03 (Fibo 76.4%) and $70.00 (psychological).
Broken 200DMA ($78.12) should keep the upside protected to maintain bearish near-term bias and guard upper pivots at $79.75 (recovery top of Nov 14) and $80 (psychological).
Weakening fundamentals on record production in the US, rise of US crude stocks above expectations and fears that China’s economy may further struggle to recover to pre-pandemic levels, which would further harm demand and keep oil prices under pressure for now.
Res: 76.56; 77.38; 78.12; 79.31.
Sup: 75.61; 74.92; 73.38; 71.73.