WTI Oil outlook: Consolidation/limited correction to precede fresh push lower

Slobodan Drvenica Windsor Brokers

WTI Oil

WTI oil price bounces on Tuesday following repeated downside rejection at key support at $65.26 (Sep 10 low), but recovery is likely to be limited, as larger picture is bearish and fundamentals predominantly negative.

Oil sentiment is firmly negative on growing concerns about the impact of tariffs on global economy, fears that the US economy is heading into recession and plans of OPEC + group to increase production in April.

Situation on daily chart points to firm bearish setup of technical studies, with triple recovery stall falling under 10DMA (daily candles with long upper shadows) contributing to negative scenario.

Near term action, however, may hold in prolonged consolidation above $65.26 support, which should be ideally capped by falling 10DMA ($67.75), but extended upticks (cannot be ruled out) to stay capped under psychological $70 barrier and mark healthy correction before larger bears regain full control.

Markets focus on releases of crude inventories reports (API and EIA) for fresh signals.

Res: 67.75; 68.20; 68.50; 69.44.
Sup: 65.26; 65.00; 64.34; 63.63.

Interested in WTI technicals? Check out the key levels

1. R3 68.62
2. R2 67.97
3. R1 66.82
PP 66.18
1. S1 65.03
2. S2 64.39
3. S3 63.24

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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