US CRUDE OIL
US oil is on track for strong bearish weekly close (the first one after three weeks in green) signaling extension of pullback from $53.74 high, posted on 12 Apr.
The price found temporary footstep at $50.06, low of Wednesday’s strong fall, with downside being reinforced by daily Kijun-sen line, currently at $50.40.
Yesterday’s close below thin daily cloud maintains bearish pressure, however, oil price may hold in extended consolidation while above $50.06 low.
Limited upside attempts are expected, with daily cloud (spanned between $50.74 and $51.15) offering initial resistance and extended upticks expected to hold below daily Tenkan-sen line at $51.90.
Eventual break below psychological $50.00 support would open immediate target at $49.62 (Fibo 61.8% of $47.07/$53.74) and may accelerate to $48.70 (weekly Kijun-sen) in extension.
Oil price remains under pressure on fears that increased US shale oil production may offset OPEC attempts to support prices by reducing oil production.
Res: 50.74; 51.15; 51.36; 51.90
Sup: 50.40; 50.06; 49.62; 48.70
Interested in Oil technicals? Check out the key levels
- R3 50.89
- R2 50.83
- R1 50.80
- PP 50.74
- S1 50.71
- S2 50.65
- S3 50.62
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.