Oil price is under pressure on Monday, as renewed weakness erased all gains made on Friday. Overall sentiment remains negative, as OPEC and non-OPEC oil producers on meeting during the weekend failed to give clearer information whether agreed production cut will extend in next six months.
Oil price dipped to session low at 47.33 on Monday, putting recent spike lows at $47.08/06 under increased pressure.
Oil is holding in consolidation phase since mid-March, with upside attempts being rejected under psychological $50.00 barrier and subsequent weakness turned focus lower, signaling that negative sentiment persists.
Final close below $47.17 (Fibo 61.8% of $42.19/$55.22 rally) is needed to generate fresh signal of bearish continuation that also requires firm break below $47.08/06 base, to open way towards $46.23 (top of thick weekly Ichimoku cloud).
Broken daily Tenkan-sen that capped recent congestion offers solid resistance at $48.34 and together with broken 200SMA ($48.66) is expected to limit upside attempts.
Res: 47.74, 48.34, 48.66, 49.46
Sup: 47.33, 47.17, 47.08, 46.23