Slobodan Drvenica
Windsor Brokers
WTI Crude Oil (May)
Crude Oil is at the back foot, ahead of Sunday’s oil producers meeting in Doha, Qatar, where the main theme will be oil production freeze, which is needed to boost the price for further bounce from multi-year lows.
Repeated rejection under key 42.47 barrier was followed by bearish acceleration, which approaches psychological 40.00 support, after losing pivotal support at 40.78 (200SMA). This gives initial signal of an end of two-day sideways trading, shaped in double-Doji candles.
Fresh bearish signal is generated on loss of 200SMA support, with daily close below needed to confirm.
Daily Slow Stochastic reversed lower from overbought territory, while daily RSI turned south just under overbought zone boundary, supporting scenario of deeper pullback.
Immediate risk is at 40.00 support, below which, two pivotal supports (Fibo 38.2% of 35.22/42.40 upleg at 39.66) and (daily20SMA at 39.31) lay.
Break here is needed to signal double-top formation and likely trigger further bearish acceleration, which may extend to 38.00 zone (Fibo 61.8% retracement).
On the other side, oil is on track for the second positive weekly close, however, long upper shadow of daily candle suggests that strong selling interest persists and may further delay final attempt above 42.47 breakpoint.
Results of oil producers meeting are expected to be the main driver of oil price in coming sessions.
Res: 41.20; 41.66; 42.14; 42.47
Sup: 40.00; 39.66; 39.31; 38.80
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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