WTI outlook: Oil price extends weakness on fading Fed rate cut expectations
WTI Oil
WTI oil price fell further in early Monday trading, in extension of Friday’s 2.2% drop, as the sentiment soured on signals that higher than expected US inflation may delay Fed rate cuts.
Fresh weakness emerged after several upside rejections and repeated failure to register a weekly close above important Fibo resistance at $78.13 (38.2% retracement of $95.00/$67.70 downtrend), which left a platform at $78.50/90 zone.
Near-term structure weakened as the price broke below a cluster of converged daily MA’s (200/10/100/ 20) and bullish momentum is fading, with formation of bearish engulfing pattern on weekly chart, adding to negative signals.
Bears cracked pivotal Fibo support at $76.04 (38.2% of $71.40/$78.90) with close below this level to further boost fresh bears for attack at $75.34/15 (daily Kijun-sen / 50% retracement) loss of which to confirm reversal.
Falling 10DMA ($76.75) offers solid resistance which should keep the upside protected and keep near-term bears intact.
Res: 76.99; 77.65; 78.50; 79.27.
Sup: 76.17; 75.81; 74.97; 74.12.
Interested in WTI technicals? Check out the key levels
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.
