Slobodan Drvenica
Windsor Brokers
WTI Crude Oil (May)
Crude oil fell to 37.61 session low, on strong (about 200-pips) gap-lower Monday’s opening, after meeting of oil producers on production freeze failed. The outcome of the meeting was more or less expected, following a number of comments during previous weeks, with notion being supported by strong bearish technical signals.
Oil closed in long red candle and below 200SMA (40.65) on Friday, signaling an end of two day consolidation, which was held above 200SMA and shaped in double-Doji candles.
The marked opened at 38.30, around the mid-point of 35.22/42.40 upled, following Friday’s close at 40.39.
Further weakness that dented next support at 37.96 (Fibo 61.8% retracement), dipped to 37.61 low so far and suggests further bearish action.
Daily close below 37.96 will generate fresh bearish signal for extension towards 36.91 (Fibo 76.4%), as freshly established bearish sentiment and formation of double top (42.47/42.40), could accelerate oil price towards key short-term support and breakpoint at 35.22 (05 Apr trough / daily Ichimoku cloud top).
Initial resistance lies at 38.84 (broken daily Kijun-sen), followed by 39.16 (formation of daily 20/30SMA’s bear cross), with extended corrective rallies, expected to hold below psychological 40.00 barrier (Friday’s low).
Res: 38.84; 39.16; 40.00; 40.65
Sup: 37.61; 36.91; 36.42; 35.22
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.
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