WTI Oil outlook: Bears hold grip ahead of Ukraine peace talks
|WTI oil price returned to red on Monday following limited and short-lived support from US threats to India to stop buying Russian oil.
The oil price fell further and pressure the floor of near-term consolidation range that extends into fourth straight day ($61.94, the lowest in 2 ½ months).
Overall sentiment remains negative, following darkened economic outlook for developed economies and China’s unsatisfactory pace of economic growth that continues to overshadow the global demand outlook.
Daily technical studies remain in full bearish setup (near-term action additionally weighed down by the latest formation of 10/100DMA bear-cross and strengthening negative momentum) and signal that larger downtrend is intact.
Bears eye targets at $60.71 (Fibo 76.4% of $55.40/$77.88) and $60.00 (psychological / higher base of the second half of May), where stronger headwinds should be expected.
Markets await signals from today’s meeting between President Trump and Ukrainian President and separate meeting with leaders of some European countries, seeking for a peace solution for Ukraine.
Oil price could be deflated further in such scenario, though optimism among traders was so far cautious and limited.
Upticks should be capped under $64.00/50 zone (broken Fibo 61.8% / 100DMA) to keep broader bearish structure intact.
Res: 63.62; 64.00; 64.50; 65.38
Sup: 61.94; 61.24; 60.71; 60.00
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.