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

US

Interested in Oil technicals? Check out the key levels

    1. R3 40.75
    2. R2 39.94
    3. R1 38.72
  1. PP 37.92
    1. S1 36.7
    2. S2 35.89
    3. S3 34.67

 

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

USD/JPY ignores downbeat Tokyo CPI, trades mixed above 104.00

USD/JPY traders look for strong signals to break the chain of three-day declines. Tokyo CPI slipped below -0.6% forecast, core CPI matched -0.7% expected in November. Risks struggle amid US off, mixed news on vaccine, US-China front. A light calendar can extend the sideways moves.

USD/JPY News

AUD/USD: Fizzles upside momentum below 0.7400 but bears await clear signals

AUD/USD eases after refreshing the three-month top the previous day, downside have recently been confined though. Chatters surrounding US-China relations, virus woes probe risk-on but absence of the US traders, light calendar elsewhere, limits the moves.

AUD/USD News

Gold: Bears noting old support for a discount

The price of gold has broken into bearish territory below a 38.2% Fibonacci retracement. In the recent good news in markets, the price of the yellow metal has come under renewed pressure. Bears will seek a discount on a pullback to retest old support, expected to turn resistance. 

Gold news

WTI regains $45.00 even as choppy session limits the moves

WTI fades pullback moves from the highest in nine months. The energy benchmark eased from the multi-day high the previous day as global optimism, mainly fuelled through the coronavirus (COVID-19) vaccine hopes, fizzled. Also challenging the oil bulls was the US holiday due to Thanksgiving Day.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors

Cryptocurrencies

Signatures