Oil prices closed lower overnight as the near term rebound appeared to be fading. The optimism over a surge in demand in China was replaced by concerns over infections in the country, as well as its outbound tourists. A regional councillor in Italy confirmed that half of passengers on China flight to Lombardy were tested COVID positive. US also announced to require travelers from China, including Hong Kong, to show negative Covid-19 test result before flights.
WTI crude oil’s rebound from 70.34 stalled after hitting 55 day EMA. It’s also kept well inside the medium term falling channel from 124.12. While bullish convergence condition is seen in daily MACD, bearishness is maintained with recent development. Further decline from current level, followed by break of 73.52 support should confirm that the corrective rebound has completed in a three wave structure. Larger down trend should then be ready to resume through 70.34 low, towards next support level at 62.90.
