WTI oil remains continues to move lower for the fourth straight day and pressures psychological support at $70 on Friday.
Fresh extension of pullback from $72.89 high which generated initial bearish signal on close below 10SMA on Thursday, broke below 20SMA ($70.45), weekly close below which would generate another negative signal.
Oil price came under pressure on growing concerns over global output as OPEC and Russia signaled they could start easing restrictions on oil production as soon as June, if they see the oil market is balancing.
In addition, comments from the White House that oil prices were too high, contributed to the pressure.
This is forming negative environment for the oil price which could result in further weakening of oil prices.
Extension below $70 handle and violation of 30SMA ($69.59) would risk extension towards next pivotal support at $68.65 (Fibo 38.2% of $61.80/$72.89).
Daily 10/20SMA’s turned to bearish setup and 14-d momentum enters negative territory, maintaining bearish pressure.
Broken 10SMA ($71.40) marks solid resistance which is expected to cap and maintain bearish bias.
Res: 70.45, 70.78, 71.38, 71.96
Sup: 70.00, 69.59, 69.00, 68.65
