WTI oil hits new multi-month low on fresh bearish acceleration
|US CRUDE OIL
WTI oil fell to $43.37 on Tuesday, hitting fresh multi-month low. Fresh acceleration lower came after narrow consolidation and upside attempts being limited at $45.00 by daily Tenkan-sen in steep descend. Bears surged through target at $43.74 (05 May spike low), signaling extension of larger bear-leg from $51.98 (25 May high). Oil price remains under strong pressure on fears on global oversupply which undermines efforts from OPEC to support oil prices by reducing oil production for extended period. Renewed pressure comes after OPEC supplies jumped in May as output recovered in Libya and Nigeria. Strong bearish sentiment in the markets continues to drive oil prices lower, with close below $43.74 handle to generate another strong bearish signal for extension towards $42.98 (Fibo 76.4% of $39.20/$55.22 (Aug 16/Jan 17) bull phase and $42.19 (14 Nov low). Strongly oversold daily studies have so far been ignored, however, corrective action could be anticipated in the near-term.
Res: 43.74; 44.07; 44.67; 45.03
Sup: 43.37; 43.06; 42.98; 42.19
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