Slobodan Drvenica
Windsor Brokers
WTI OIL
WTI oil extends steep fall into second day, being down 4.5% so far today, after 4.1% drop on Wednesday.
Today's bearish extension broke below key support at $36.11 (08 Sep low) and hit new 4 1/2-month low at 35.35.
Fresh weakness was fueled by growing fears of stall in demand recovery as sharp rise in coronavirus cases and more restrictive measures, threat of further drop in demand.
Strong rise in US crude stocks and decision of OPEC+ group to increase production by 2 million bpd, adds to oversupply fears which could push oil prices significantly lower. Wednesday's close below 200DMA ($37.42) and break below the floor of multi-month range was strong bearish signal that could lead towards deeper correction of Apr/Aug $6.52/$43.75 recovery.
Bears pressure Fibo support at $34.96 (23.6% of $6.52/$43.75), loss of which could spark fresh acceleration towards $30 (psychological) and $29.53 (Fibo 38.2%). Firmly bearish daily techs favor further weakness, but oversold conditions warn that bears may take a breather before resuming. Upticks under broken falling 200DMA expected to offer fresh selling opportunities.
Res: 36.61; 36.96; 37.31; 37.99
Sup: 34.96; 34.33; 32.34; 31.12
Interested in Oil technicals? Check out the key levels
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.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.