WTI oil outlook: WTI oil hits 18-year low on probe below psychological $20 support
|WTI OIL
WTI future contract opened with gap-lower on Monday and cracked psychological $20 support to hit new 18-year low at $19.90. Mounting fears that global shutdown on coronavirus could last months and further slash demand for oil. Low oil prices hurt many oil firms as it becomes unprofitable to remain active, as storage facilities are full and demand continues to fall. Outlook for oil prices remains dark as fundamentals are negative and tending to extend that may push the price further down. Loss of psychological $20 level would spark fresh selling and unmask support at $16.83 (Nov 2001 low) with extension towards $10.63 (Dec 1998 low) and psychological $10 level, not ruled out. Falling 10DMA which tracks the descend in past over one month marks initial resistance at $23.73.
Res: 20.92; 21.51; 21.94; 22.83
Sup: 19.90; 19.40; 19.00; 18.12
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