Fresh demand concerns deflate oil prices

Slobodan Drvenica Windsor Brokers

WTI oil fell over $1 in early US trading on Monday, offsetting positive signal from today’s gap-higher opening, caused by a cyberattack that forced the shutdown of major fuel pipelines in the United States.

Fresh demand concerns over rising coronavirus cases in Asia, weakened the sentiment and pushed oil prices lower, sidelining hopes for stronger recovery after last week’s three-day drop ended in long-tailed Doji, signaling that bears lost traction.

Fresh weakness is still holding above pivotal support at $63.86 (last Friday’s low / broken Fibo 61.8% of $67.95/$57.25), keeping in play hopes for fresh attempts higher.

Conversely, firm break of $63.86 pivot would signal temporary top at $66.73 (May 5 high) and risk deeper pullback.|

Res: 65.21; 65.72; 65.95; 66.26

Sup: 64.26; 63.86; 63.34; 62.91

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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