WTI Oil outlook: On track for the biggest weekly loss in months but oversold studies may slow bears
|WTI Oil
WTI oil remains at the back foot and holding at the lowest in five weeks on Friday, following a strong fall in past two days (down 7.6%).
Renewed concerns about further slowdown in global economic growth on keeping high interest rates for longer period, which would result in a more negative impact on oil demand, increased pressure on oil prices.
In addition, Russia had lifted its ban on diesel exports, imposed on Sep 21, which contributes to negative near-term outlook.
The WTI is on track for the biggest weekly loss since mid-March (over 9%), with massive bearish candle on weekly chart, signaling formation of reversal pattern.
Bears closed below pivotal Fibo support at $84.31 (38.2% of $67.02/$95.00) with weekly close below here to confirm bearish signal.
Daily studies weakened significantly, however, overstretched 14-d momentum and deeply oversold stochastic, might be an obstacle for bears, in addition to the headwinds provided by rising daily Ichimoku cloud, as the recent weakness approached cloud top ($81.79).
Limited consolidation should be ideally capped under $84.31/50 (broken Fibo 38.2% / 55DMA) to keep bears intact and offer better selling opportunities, for acceleration towards psychological $80 support.
Res: 83.10; 84.50; 84.87; 85.00.
Sup: 82.05; 81.01; 80.00; 78.81.
Interested in WTI technicals? Check out the key levels
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